After new federal tariff policies sent ripples through global trade markets, Owensboro Riverport Authority President and CEO Brian Wright said the biggest local impact so far isn’t the tariffs themselves — but the uncertainty surrounding them.
Wright spoke with the Owensboro Times on Wednesday, just hours before President Donald Trump announced a 90-day pause on increased tariffs for most countries. The pause, however, does not extend to Chinese imports, which are now subject to a 125% tariff in a tit-for-tat escalation between the two countries, according to the Associated Press.
“We’re not seeing a collapse in activity, but we are definitely seeing hesitation,” Wright said. “Right now, it’s just the uncertainty of it all that’s kind of put us in a spot.”
The Owensboro Riverport has held Foreign Trade Zone (FTZ) status since 2003. That designation allows goods to be imported, stored, or processed without immediately paying tariffs — though duties are still required when the goods leave the zone. Wright said it’s a useful tool, especially for manufacturers that want to delay payments or possibly avoid higher rates if tariffs are later lifted.
“The best use of an FTZ is to bring in all the parts, assemble a finished product inside the zone, and pay a lower tariff rate on the final good instead of individual pieces,” he said.
That strategy can be especially beneficial for industries such as automotive manufacturing. But with the current volatility, few are making bold moves.
“Markets are on pins and needles. They’re waiting for clear direction from the federal level,” Wright said. “Until that happens, there’s just not a lot of international movement.”
Wright said the Riverport has already felt the short-term impact. He said roughly 70% of the aluminum that flows through the port originates from Canada. Since the 25% aluminum tariff went into effect in February, he said, commodity traders have largely paused shipments, citing volatility in the Midwest Premium — the market cost that includes factors like freight and tariffs.
“That rate jumped from 27 cents a pound to nearly 39 cents, and when it’s that erratic, traders can’t confidently move product without risking a loss,” Wright said.
Though aluminum exports from the Riverport remain steady, the reduction in imports is notable. Still, Wright said the Riverport is financially stable and has no plans to lay off staff.
“We’re reallocating employees to areas of higher demand and being cautious with our moves. We’re not in dire straits,” he said. “We’ve weathered tough stretches before, and this feels like a short-term issue.”
Wright also noted that high water levels have temporarily halted unloading activities, affecting their ability to receive inbound shipments. This situation has compounded the challenges posed by the current tariff uncertainties, creating a “one-two punch” for the Riverport’s operations.
Wright emphasized the Riverport’s longstanding role as a public service entity. While the organization technically has the ability to impose local taxes, he said they never have — and aren’t anywhere near needing to consider such a step.
“For the last 25 years, we’ve contributed back to the city through economic development and road maintenance support,” he said.
The Riverport is also working with state partners to explore infrastructure and capital improvement funding. Wright credited the General Assembly for recognizing the value of riverports statewide, noting recent grant awards through the Kentucky Transportation Cabinet’s Kentucky Riverports Improvement (KRI) program and House Bill 1, which set aside $15 million for ports over a two-year period. Owensboro received $750,000 to refurbish an older facility.
“State legislators continue to believe in the purpose of riverports. We provide public access and connect to broader infrastructure like Highway 331, which benefits more than just us,” Wright said.
Still, he acknowledged that global policy decisions can overshadow local efforts.
“As a public service provider, our influence isn’t on the level of big manufacturing,” he said. “We’re ready to adapt — but until things settle out at the federal level, all we can do is wait and stay ready.”
