Trump's new tariffs could impact prices for Kentucky's grocery, gas and auto industry

LOUISVILLE, Ky. (WDRB) -- President Donald Trump has taken executive action to impose or threaten new tariffs on imports from Canada, Mexico and China.

The moves fulfill certain campaign promises but also have roiled stock markets and supply chains, while straining relations with the country's North American neighbors and the world's second-largest economy.

Unlike during the 2024 campaign, when Trump billed his economic agenda as a surefire way to reduce the cost of living for Americans, the Republican president now acknowledges what many economists have long forecasted: The levies could yield higher prices and lower supplies across the market.

Economists said Kentucky's auto industry could feel the pinch of proposed tariffs.

"If you wanted to protect the auto industry you would place tariffs on cars. You wouldn't place a tariff on steel because the auto industry needs steel," said UofL Associate Economics Professor Josh Pinkston. "You wouldn't place tariffs on parts that go into cars because they need those and that just raised the cost of production of cars here."

The price of gas could also increase and that may happen quicker because it is based on predicted prices.

The Kentucky Retail Federation is urging shoppers to not "panic buy" because some items take longer to be impacted than others.

"Retailers are already looking six months ahead of what they are going to be purchasing six months from now," said Federation spokesperson Steve McClain. "They have already worked in their budgets, their transportation costs of getting those goods that are going to get on your shelves this week. So when you start talking about raising tariffs it just makes everyone very jittery.

A spokesperson for Kroger said the grocery chain does not expect to be impacted saying very little of its products come from overseas.

Kentucky bourbon producers again find themselves in the crosshairs as a target for retaliation after President Trump ordered new tariffs.

The bourbon industry pumps $9 billion into the Bluegrass State's economy each year, creating more jobs and attracting more tourists than ever before, according to a study released last year. Kentucky distillers produce 95% of the global bourbon supply, according to the Kentucky Distillers' Association.

"Kentucky Bourbon creates thousands of jobs, spurs economic development, and brings America's only native spirit to shelves across the globe," Eric Gregory, president of the Kentucky Distillers' Association, said in a written statement Monday evening. "We commend President Trump and President Sheinbaum of Mexico and Canadian Prime Minister Trudeau for working on a resolution and suspending tariffs for 30 days. We look forward to permanent agreements that will enable Kentucky Bourbon to be enjoyed internationally."

Kentucky Democratic Gov. Andy Beshear warned that tariffs will hurt working families in a state that voted overwhelmingly last November to return Trump to the White House. The pain won't be limited to distilleries, but will include every segment contributing to bourbon production, said Beshear, who is widely seen by political observers as a potential candidate for president in 2028.

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