Bourbon is a quintessential US product. But the industry could soon be drawn into a global trade war since it has been placed on a retaliatory tariff list drawn up by the European Commission. It comes after the Trump administration imposed import tariffs on European steel and aluminum. The state of Kentucky is home to 95 percent of the US bourbon industry and the latest trade developments are causing concern locally. Dan Williams now reports.  

Signs of Louisville's history line the Ohio River. An Abraham Lincoln memorial and a museum dedicated to Muhammed Ali are among the tourist attractions in Kentucky's largest city. The area remains central to the world's bourbon industry. Rapid growth over the last decade has seen the trade boom in value and it is now worth eight-and-a-half billion dollars to the U.S. state. But those gains could be under threat. Bourbon is on a list of goods targeted by the European Commission for retaliatory tariffs. It follows the Trump administration's decision to impose tariffs on steel and aluminum imports. The development has caused concern at 'The Bourbon Society'.

EVAN THURMOND, PRESIDENT THE BOURBON SOCIETY "Global trade is important and should be more open versus penalizing people. It's just unnecessary I think to play political games with it. It means a lot to people. It means a lot of jobs."

It is estimated that 17,500 hundred jobs are generated by the industry in the state. Last year, more than one point eight million barrels were filled with bourbon, the most since 1967.

DAN WILLIAMS FRANKFORT, KENTUCKY "The bourbon industry has enjoyed an impressive boom in recent years. Established brands have expanded their operations. While new bourbon companies continue to enter the market. But some fear any international tariffs could dent that growth."

KENNETH TROSKE GATTON COLLEGE OF BUSINESS & ECONOMICS "You are obviously concerned that when you impose tariffs on products and you produce a lot of that product. There are lots of ways that can negatively affect you. Certainly, Europe is important. Asia is going to be more important. If I were in the Bourbon industry, alarm bells would be going off."

Kaveh Zamanian is the founder of Rabbit Hole distilling. The company is in the middle of building a new downtown distillery and tasting room. Zamanian warns the tariffs will inevitably hurt the industry.

KAVEH ZAMANIAN, FOUNDER RABBIT HOLE DISTILLING "I certainly think that for the larger players that have for the last few years increased their capacity, put a lot of capital expenditure in growth, I think that will be an impact for them. I think it will also likely trickle down to smaller players as well just from the stand point of our production capacity and what you can do with that extra capacity."

Marianne Barnes is the industry's first female master distiller. She hopes bourbon companies continue to push for overseas expansion regardless of any tariffs.

MARIANNE BARNES, MASTER DISTILLER CASTLE & KEY "I know it will cut into the margin and may make it harder for the smaller brands to get out there. I hope that it doesn't deter people from getting their spirits out to other markets."

Bourbon is a key part of Kentucky's identity. But the industry may also become an unwitting pawn in an international trade war. Dan Williams, CGTN, Louisville, Kentucky.