Donald Trump’s tariff tax is hitting Kentucky’s economy hard, with experts forecasting a $2,307 tax hike this year for Bluegrass State households. Businesses and families in all corners of the state are feeling the immediate impact of Trump’s economic chaos.
Now, Trump’s losing bet on starting a reckless trade war is ruining one of the longest-standing traditions in American sports, the Kentucky Derby, which fuels the racetrack, local businesses, and hospitality industry alike to the tune of $420 million. However, this year, officials at Churchill Downs report they’ve seen a downturn in ticket demand over the last nine weeks that correlates directly with Trump’s escalating trade war.
Uncertainty is the buzzword on the backstretch, and Trump’s failing economy has derby attendees scrambling for ways to save money this weekend. Trump’s tax isn’t just hurting the track and local businesses; local Louisville residents are getting priced out of attending the famed event, due to rising prices and economic uncertainty.
Right out of the gate, Trump’s tariffs smacked Kentucky farmers and bourbon distillers. Kentucky farmers fuel the $9 billion bourbon industry, but they’ve been forced to adjust to Trump’s wrecking ball economics. The export markets in agriculture have slowed due to Trump’s trade war, and his chaotic economy has hurt bourbon companies, both big and small. Woodford Reserve, a top sponsor for the Kentucky Derby, and their suppliers have been disrupted. Local distillers in Louisville lost access to international markets the moment Donald Trump declared his chaotic trade war with the rest of the world, leaving American companies to pay the price. After a decade of growth, aided by expanded markets, Trump’s global trade war has come around the top of the stretch to hit the Bluegrass bourbon industry at the wire.
“Trump’s trade war has managed to do what even a muddy track couldn’t: drag down the Kentucky Derby and ruin an economic windfall for Kentuckians. Trump’s failed policies turned bourbon, betting, and a 151-year-old tradition into collateral damage,” said American Bridge 21st Century spokesperson Brandon Weathersby. “Trump promised prosperity, but instead he’s ruining sporting traditions, taxing American families, and turning the Derby into another victim of his economic chaos. If there were a trophy for ruining the economy, Trump would be in the winner’s circle.”
Published: May 2, 2025 | Last Modified: May 12, 2025