As the U.S. remains embattled in an ever-changing trade war with Canada and tariffs from the European Union loom, bourbon makers in Kentucky are trying to find their footing and plan a path forward.

Smaller distillers say the uncertainty created by the administration's erratic tariff announcements is crippling their ability to expand into Canadian and EU markets.

Stores in Canada have been removing U.S.-made bourbon from their shelves in retaliation for stiff tariffs placed on the nation's goods.

President Donald Trump's blunt-force use of tariffs has forged a rare bipartisan alliance among Kentucky's top leaders — Democratic Gov. Andy Beshear and Republican Sens. Mitch McConnell and Rand Paul — in lamenting brewing trade wars that could stagger the bourbon sector.

President Trump's 25% tariffs on all imported steel and aluminum have taken effect. Victor Yarbrough, CEO of Brough Brothers Distillery, the first African American-owned distillery in Kentucky, joins "The Daily Report" to discuss the impact.