Kentucky’s International Trade: It’s Not What You Think

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The Federal Reserve Bank of Cleveland published an Informative analysis of Kentucky’s international trade patterns this morning. No, it’s not all bourbon. According to the analysis of the state’s trading relationships from 2008-2024, Kentucky is a net importer, with 2024 imports of $94.5 billion far exceeding exports of $47.9 billion. 


The report identifies the EU as the state’s largest trading partner in 2024, accounting for 31.4% of imports, followed by Mexico at 10.5%. Interestingly, the report notes that the state’s imports from China have fallen significantly in recent years, from just over 24% in 2010 to about 7% in 2024. A sizable percentage of the 2024 imports, 36%, were pharmaceuticals and medicines, principally from Ireland and Singapore. The EU is also cited as the largest export market for the state, accounting for 23% of all exports in 2024, followed by Canada at 20%. Kentucky’s largest export category by far was transportation equipment, which accounted for over 53% of total exports in 2024, the bulk of which was in aerospace products and parts. 


We note that the data set analyzed in the report only extends to 2024, before the current Administration’s trade and tariff policies were put in place. It will be interesting to see what the 2025 data shows and what impact, if any, these policies will have on Kentucky’s trade relationships and economy. 


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