KENTUCKY — You likely have seen the headlines about the back and forth between the White House and President Donald Trump's administration and their stance on the use of tariffs, saying among other things, it would raise revenue for the U.S. government. Others have argued the revenue would come at a high cost to the American economy overall.

Jason Bailey, executive director for the Kentucky Center for Economic Policy, joined "In Focus Kentucky" to provide some expert analysis on what tariffs do and explained what effects they could have on Kentucky-made products.

"A lot ... a few different types of impacts," Bailey said. "One, is that there are inputs to products that are produced in Kentucky, so manufactured goods or farming farmers that may be more expensive. If you think about the auto industry, there are parts that are produced in other countries, in Mexico or in Canada, where they come into the U.S., come into Kentucky and then become part of an automobile. Or there are farmers who buy certain steel that goes into tractors that they purchase. If those things become more expensive, then those products become more expensive, whether they're purchased in the States."

"Also, it makes our exports more expensive ... you think about bourbon being a signature bull, but we also export a lot of Aerospace products. In Kentucky, we export cars. Those will become more expensive ... we're already seeing that if we put tariffs on them, they put tariffs on us. It makes our products more expensive. That makes them less so."

"If a trade war develops, that's a problem. There's also the just the issue, that goods can become more expensive than consumers buy here in the United States, with food, gas or other products that are either more expensive because of those inputs to American products or because they're things that we buy elsewhere — banana, coffee, it can stoke inflation." 

You can watch the full In Focus Kentucky segment in the player above.