By MICHAEL CRIMMINS
Glasgow News 1
Kentucky’s economy is the most reliant on global trade, according to a recent study released by the National Association of Realtors.
The study states global trade makes up roughly 32.3 percent of the commonwealth’s gross domestic profit, which is equal to $94.5 billion. Kentucky’s is especially reliant on imports when it comes to pharmaceuticals and the automotive industry, which President and Chief Executive of the Barren County Economic Authority Maureen Carpenter recently said had been “flipped on its head.”
Its top “import partners” are Mexico, Japan, Taiwan, Singapore and Ireland, and top “export partners” are Canada, the United Kingdom, France, China and Mexico, the study states.
On Thursday, April 17, U.S. Senator and former Majority Leader Mitch McConnell spoke at the Glasgow Rotary Club saying he is still “unconvinced” about the efficacy of President Donald Trump’s recent tariffs.
“Put me down as not yet convinced that these are the best way to go, but we’ll see, maybe it’ll turn out the way the president hopes it will,” McConnell said. “In the past Kentucky has not benefited from tariffs.”
State Representative Steve Riley listens as U.S. Senator Mitch McConnell speaks on a wide array of topics to the Glasgow Rotary Club on April 17. Michael Crimmins/Glasgow News 1
Kentucky’s other U.S. Senator Rand Paul has also broke with the current administration, reintroducing a bill “to shield Americans from the high costs of tariffs.”
“Unchecked executive actions enacting tariffs tax our citizens, threaten our economy, raise prices for everyday goods, and erode the system of checks and balances that our founders so carefully crafted,” Paul said in a press release announcing the reintroduction of the “No Taxation Without Representation Act.”
In employment, the study states that more trade-dependent states, like Kentucky, “may experience more pronounced fluctuation in their job markets in response to trade policy changes,” though it is difficult to pinpoint specifics.
“Thousands of jobs – both directly and indirectly – are tied to global business. However, data indicate that the employment effects of trade policies are multifaceted and vary significantly across states, influenced by each state’s economic composition and the specific industries present,” according to the study.
Conversely, the study finds that housing prices increase more rapidly in less trade-dependent states when compared to the more dependent, and often rural, states.
“People and income ultimately drive housing markets; the states that led in home price growth were often those with rapid job growth in tech and services, high levels of domestic migration, and limited housing supply or zoning constraints,” the study states. “If the last 30 years have taught us anything, it is that the housing market thrives where people want to live and work, not merely where goods are produced or shipped.”
The National Association of Realtor’s study can be read here.
