Democratic Rep. Morgan McGarvey tells Pamela Brown that the impacts of President Trump’s tariffs on his state of Kentucky are “massive” and says he thinks they will be “absolutely devastating” for its bourbon industry.

Washington

Donald Trump has signed an order to impose tariffs imports into the U.S. from countries including China, Mexico and Canada.

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Democratic Representative Morgan McGarvey has expressed significant concerns about former President Donald Trump's proposals to reintroduce tariffs, specifically highlighting the potential adverse impacts on Kentucky's economy. McGarvey, who resides in Louisville, emphasized that the bourbon industry could face severe repercussions from these tariffs, recalling that a similar situation under Trump's previous tenure led to a substantial reduction in bourbon exports. According to McGarvey, these upcoming tariffs may exceed those from Trump's earlier presidency, intensifying the potential damage to the state's vital bourbon sector.

Trump's tariff plans are being touted as a means to foster a manufacturing revival in the United States, incentivizing consumers to purchase domestically produced goods. However, McGarvey remains skeptical, noting the decline in manufacturing during Trump's first term compared to the rebound seen under President Biden. He elaborated on the nuanced use of tariffs, suggesting that targeted applications, such as those on specific industries for national security or economic incentives, are more effective. McGarvey criticized broad, non-targeted tariffs, especially those imposed on allied nations, arguing that they proved ineffective in the past and might not achieve their intended goals now.

There is also an ongoing discussion among lawmakers about the need for Congress to reclaim authority over tariffs, with some pursuing a bipartisan legislative push that could override a presidential veto. While such a measure has gained traction in the Senate, McGarvey doubts whether it will be brought to a vote in the House of Representatives, suggesting hesitance due to the possibility of it passing with substantial support from both parties.



Dem Rep. McGarvey: Trump tariffs will be ‘absolutely devastating’

I think the impacts are massive. You know, if you live in Kentucky, if you live in Louisville, Kentucky, where I live, you know somebody who works in the bourbon industry. These aren't far-off economic terms like tariff and retaliation and markets going up and down. This is somebody wondering down the street if they're going to have their job next week. And so we're seeing that already, but we don't have to guess what's going to happen. We've seen what happened. When Trump was president the first time, he did the same thing. He had massive tax cuts. He put tariffs in place. And the bourbon industry was devastated, cut our exports in half with Trump's previous tariffs. And those tariffs weren't as big as the tariffs he's proposing now. So I think it's going to be absolutely devastating for the industry. Yeah, the bourbon industry is just such a big industry in Kentucky, and you have to wonder about the ripple effect, right, if they're impacted, the jobs, and what's going to happen in my beloved home state right there. You know, the president, he is sort of saying, look, everyone, there's going to be some short-term pain because this is going to lead to a manufacturing renaissance here in the U.S. and really incentivize people to buy American. Are you seeing any evidence that that could happen? I mean, you know, can you see the good in that? Look, I want manufacturing jobs in the United States. I want more manufacturing jobs in the United States. But again, look at what happened when Trump did this the first time. Manufacturing actually declined. Then under the Biden administration, it picked up again because, you know, tariffs, when we talk about tariffs, tariffs are neither good nor bad. Tariffs are a tool. A hammer is neither good nor bad. It's good for putting a nail in the wall. It's not so good for fixing your iPad. How you use these tariffs matters. And so if you're using tariffs in a targeted way with policies like saying, hey, we want more semiconductor chips built here in the United States for manufacturing purposes, for national security purposes, so we're going to put policies in place that incentivize it and we're going to put a tariff on this industry to further encourage to buy these chips in America. That's the kind of thing that works. It leads to more jobs. It leads to better production here at home. But when you just throw these tariffs across the board and on our allies, I understand why we're putting tariffs on China. They're competing unfairly. They're adversaries of ours. But these across the board tariffs on our allies where we are doing good trade. This did not work when Trump was president the first time. The markets are saying it's not going to work this time. There's no reason to think it's going to work. And the Trump administration has argued, well, look, when we did this the first time that, you know, inflation didn't really go up. It held steady. This clearly is different. This is much more aggressive. And I think you're seeing it in the markets right now, the volatility and the uncertainty kind of fueling that of what this means. And you have lawmakers also pushing to reclaim congressional authority over tariffs. Do you think there's enough bipartisan support for something like that to pass with a veto-proof majority? I would certainly hope so. You saw it pass on a bipartisan basis in the Senate. I don't think Mike Johnson is going to bring it up for a vote in the House. And maybe because there is a fear, it would pass.

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