Tag: trade
Whiskey

Kentucky Is About To Get Screwed By Trump Again

What’s that old definition of insanity—doing the same thing over and over again and expecting a different result?

Enter Kentucky.

Back in 2018, as then-President Donald Trump did his usual bullying act with Europe, the European Union hit back in a smart and targeted manner, slapping retaliatory sanctions against Trump-supporting industries (e.g., coal, agriculture) and states (e.g., Texas, Florida, Kentucky).

The tariffs cost those industries dearly, yet voters in those states seemingly decided that free and unfettered trade with our allies was too big a price to pay for transgender people having rights or the price of eggs being too high, so they voted for more of that pain last November.

And now in the spotlight is Kentucky’s whiskey industry. Here’s WCPO, an ABC affiliate out of nearby Cincinnati, Ohio:

The threat stems from actions taken by the first Trump Administration in 2018, when the U.S. first slapped 25% and 10% tariffs on European steel and aluminum imports, respectively. European Union officials then imposed a 25% retaliatory tariff on American whiskey exports, which it suspended in 2022.

"We saw tens—if not hundreds—of millions of millions of dollars of impact on exports that the bourbon industry is just recovering from," Kentucky Gov. Andy Beshear said during a Jan. 16 press conference. "A state, again, that voted for Trump by 30 points will get hit incredibly hard."

Eric Gregory, the president of the Kentucky Distillers’ Association, an industry group, told WCPO that the 2018 tariffs cost his industry—and hence the state—upwards of roughly $580 million, which is a breathtaking amount. Those EU tariffs were 25 percent. The new tariffs, set to take effect on March 31 if no deal is reached between the U.S. and EU, will be double that: 50 percent. Kentucky distillers export over 95 percent of the world’s bourbon products, with the EU being their biggest export market, according to Gregory.

Want to guess the next-biggest market? Mexico and Canada—Trump’s newest foes.

Bourbon is a $9 billion industry, according to the Kentucky Distillers’ Organization. The group says the local industry employs over 23,100 people and generates $358 million in tax revenue. In other words, these distillers and Kentucky could be in for a world of hurt.

"We're trying to sound the alarms as much as possible that these are good, paying American jobs that are in jeopardy," Gregory told WCPO. "We have been caught up in trade wars that have nothing to do with whiskey."

Except it has everything to do with Trump’s trade wars. Trump started a fight that has already generated a great deal of collateral damage. The smartest trade partners will do what the EU did—retaliate against his own supporters. And given that Trump’s answer to everything right now is “TARIFFS,” expect the pain to go deep.

What’s worse for these guys, domestic consumption of alcohol is down.

“The new Generation Z (isn't) drinking as much. You've got everything from weight loss drugs that deter the effects of alcohol to supply chain issues," Gregory said. "When you look at cutting off a major supply market like the EU with all this bourbon sitting here, that's a recipe for trouble."

"We need President Trump's help to figure out a way to help us get out of this mess that we've been ensnared in,” he added.

Of course, Trump doesn't care. Kentucky could’ve done something about it on Election Day, but they opted for this—and by a massive margin. As the state that also foisted Republican Sen. Mitch McConnell on us (as well as GOP Sen. Rand Paul)—if anyone deserves what’s coming, it may just be Kentucky.

The hope is now that as countries weigh retaliatory tariffs, they take the EU’s lead and focus their retaliations on red states and red-leaning industries as much as possible.

The next four years will suck, but anything that directs the pain at the right people makes it a little more bearable.

Reprinted with permission from Daily Kos.

Donald Trump

Shaking A Shrunken  Stick, Trump Leads America Boldly Into Decline

Not a month old, the second Trump presidency is barreling toward the decline that big-mouth leaders have been sending their countries for centuries. Theodore Roosevelt warned of such dangers.

Speaking at the 1901 Minnesota State Fair, he famously shared the African proverb, "Speak softly and carry a big stick."

Roosevelt elaborated: "If a man continually blusters, if he lacks civility, a big stick will not save him from trouble." For a nation, he added, "It is both foolish and undignified to indulge in undue self-glorification, and, above all, in loose-tongued denunciation of other peoples."

Trump's threat of a 25 percent tariff against Colombia if it didn't start accepting planeloads of deported Colombians did work. But rather than take quiet satisfaction, he had to make a high school-level jab against Colombia's leader, calling him "very unpopular amongst his people." (An earlier White House statement on the planned sanctions ignorantly misspelled Colombia as "Columbia.'" That's the university, not the country. Also the Hollywood filmmaker.)

China is another matter. Trump has backed off on the big-stick approach toward China. He's now threatening tariffs of 10 percent, marked down from his earlier 60 percent. But can China be intimidated by a smaller stick from a blowhard? A stick of any size constitutes a challenge to China's self-esteem, something China has in quantity, and its own quest for global dominance.

About which, China has developed an AI model called DeepSeek that's almost as good as its American competitors' while using inferior AI chips. It costs a lot less and consumes less energy. That triggered a rout on Wall Street, hitting investors, not to mention Trump's beloved technology oligarchs, in the gut.

Americans now have a recovering (we hope) alcoholic in charge of the nation's defense. Even if Pete Hegseth were a beacon of sobriety, he utterly lacked the qualifications for that job. He was, however, a photogenic talking head on Fox.

On his first day at Defense, Hegseth announced big plans to ban transgender people from the military. Why Americans should feel safer knowing that people who identify with a gender other than the one they were born with can't serve in the military is unclear.

Israel, Australia, Canada, and Germany let transgender soldiers operate openly without concerns for military readiness. In this country, female-born Shane Ortega served in the Marines before transitioning to male identity. He then transferred to the Army and flew countless helicopter missions in Iraq and Afghanistan.

Elsewhere in his second presidential term, Trump has failed his promised follow-through on lowering the price of groceries. On the contrary, egg prices are setting new records. They are up nearly 37 percent from this time last year, and are expected to go higher still. Kind of makes you miss the more affordable grocery carts of the Biden era.

Lumber prices have risen 35 percent from five years ago. Trump's threat to slap a 25% tariff on Canada, a major supplier, isn't going to make wood products more affordable. One feels for the disaster-struck people of North Carolina and California who need lumber to rebuild.

But since the construction industry depends so heavily on workers whom Trump vows to rapidly deport, there may not be enough people left to do the rebuilding. At the very least, the cost of employing them would go way up.

As for shaking his shrunken stick at China, Trump has become one of the "obnoxious" individuals Theodore Roosevelt warned against. One "who is always loudly boasting" and "absolutely contemptible" for not being prepared to back up his words.

In other business, Trump's attacks on electric vehicles are helping Chinese competitors eat our domestic carmakers' lunch on EV production and future sales. That depressing topic is for another day.

Reprinted with permission from Creators.

'Hit Him Back Twice As Hard': Ontario Premier Bluntly Challenges Trump

'Hit Him Back Twice As Hard': Ontario Premier Bluntly Challenges Trump

While Canadian Prime Minister Justin Trudeau was the face of Canadian opposition to President Donald Trump in his first term, that role now appears to belong to Ontario Premier Doug Ford, leader of the Progressive Conservative Party.

In a lengthy interview with Politico magazine, Ford made it clear that while he hoped for good relations between Canada and the U.S. over the next four years, he wouldn't hesitate to be combative with Trump should the second-term president antagonize the United States' northern neighbor. Politico's Alexander Burns noted that Ford often sports a blue hat with the same serif-style font seen on MAGA hats that reads: "CANADA IS NOT FOR SALE."

Ford, who is 60 years old, accepted comparisons of his political style to professional wrestling. He likened himself to a "brawler with a reflex for combat," according to Burns.

“I’m a street fighter in politics,” said Ford, who is the brother of the late former Toronto mayor Rob Ford. “If someone throws a punch at me, I’m going to hit him back twice as hard.”

After Trump threatened to impose a 25 percent tariff on goods imported from Canada, Ford said he was ready to strike back with strict trade measures. This includes banning American liquor from Ontario's shelves, cutting power transmission from Canada to American homes and businesses just across the border (Windsor, Ontario is adjacent to Detroit, Michigan) and even what Burns called "dollar-for-dollar retaliation" against red states.

"[W]e’re standing up for the people. And the establishment and all the muckety-mucks, they think differently," the Ontario premier said. "For the blue-collar, hard-working families out there, they have a voice with the Ford family.

Now that the Liberal Party's Trudeau is stepping down and not seeing another term as prime minister, Ford has called for new elections in his province, seeking to claim another term in office to cement his leadership throughout the second Trump administration. He recently made an entreaty to the new U.S. president in a Wall Street Journal op-ed, arguing that a tighter United States-Canada alliance would be the best counter to China's economic influence.

"America will need allies, and Canada can help," Ford wrote on the day of Trump's second inauguration. "Our country offers deeply integrated supply chains across strategically significant sectors. We have an abundant supply of critical minerals, oil and gas and nuclear energy. We boast a highly trained workforce and a long legacy of partnership with American allies to confront global threats and fight tyranny."

If Trump follows through on his tariff threat, it could cause severe economic consequences for many Americans given the billions of dollars in Canadian goods Americans depend on every day. Jonathan Wilkinson, who is Canada's natural resources minster, recently warned that gas prices for some customers in the Midwest could soar by as much as 75 cents per gallon, given that the U.S. imports millions of barrels of oil from Canada every day.

The prospect of a trade war has some Americans scrambling to make significant purchases sooner than they expected in anticipation of higher prices. This includes both Canadian-made goods as well as products made in China (which could be hit with a 10 percent tariff) and Mexico, which Trump has threatened with a 25 percent tariff. Mexico in particular exports billions of dollars in grocery items ranging from meat to dairy products, confectionery items and produce, among others.

Reprinted with permission from Alternet.

Trump May Claim 'National Emergency' To Impose New Tariffs

Trump May Claim 'National Emergency' To Impose New Tariffs

President-elect Donald Trump may be planning to invoke a national security-related emergency shortly after taking office in order to pass one of his signature campaign promises, according to a recent report.

CNN reported Wednesday that Trump is contemplating an economic emergency declaration as a means of imposing broad, sweeping tariffs on imported foreign goods. Under the International Economic Emergency Powers Act (IEEPA), which hasn't been used since President Richard Nixon's administration, Trump could declare that new tariffs are necessary for national security. One unnamed aide told CNN that "nothing is off the table" when considering how to impose new tariffs.

IEEPA allows a president to unilaterally implement a new tariff program to oversee U.S. imports, without Congress having the ability to provide any oversight or regulation on how those tariffs are imposed. He previously threatened to use IEEPA in 2019 to impose a five percent tariff on Mexican-made goods – with a ceiling of 25 percent — unless Mexico's government took action to slow the number of undocumented immigrants entering the U.S. However, after the U.S. and Mexico negotiated the "remain in Mexico" policy, Trump withdrew the tariff threat.

While Trump was largely able to impose tariffs during his first administration without Congress, one expert is skeptical that Trump will be able to force through his proposed new tariffs under IEEPA. Alan Wm. Wolff, who is a former deputy director-general of the World Trade Organization, wrote in a November blog post that the president-elect likely wouldn't be able to justify a national security emergency to singlehandedly raise tariffs without congressional input.

"Can it be used against trade with all countries, our allies and friends in Europe and Asia, in the Americas, not to mention the poorest countries in Africa? That would simply be too large a power grab to have been within what Congress intended in this statute," he argued.

As Wolff wrote, Trump may have difficulty convincing Congress that there's a national security situation dire enough to warrant an economic emergency declaration. The U.S. economy has been healthy by all measurable metrics for the last half of President Joe Biden's administration, despite him taking office under abnormally high inflation and interest rates due to the stress caused by the Covid-19 pandemic. Additionally, real wages have been steadily climbing since 2022, and unemployment rates have remained historically low despite economist's predictions that the jobless rate would have to go up significantly to lower inflation.

“Over the next four years the United States is going to take off like a rocket ship. But really it’s already doing it," Trump said in a Tuesday press conference.

Reprinted with permission from Alternet.

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