Last week, the 2025 30-day Regular Session of the Kentucky General Assembly concluded. Lawmakers returned on March 27 and 28 for two final days to strategically override any Gubernatorial vetoes and pass outstanding legislation. During the Session, 148 bills and 14 resolutions were passed into law from over 1,000 filed proposals. Of these, 110 were signed by the Governor, 27 were enacted over the Governor’s veto, and 10 became law without the Governor’s signature. A total of 932 bills failed to pass one or both Chambers or become law, while two bills were enacted with line-item vetoes from the Governor.

During the “short session,” legislative leaders approached policy changes and budget amendments with caution due to uncertainty surrounding federal impacts on the Commonwealth. The General Assembly advanced key business priorities, including reducing state income tax rates, streamlining regulations, and addressing some housing affordability solutions. Additionally, legislators allocated budget surplus funds to support disaster relief efforts. Below are key bills monitored by Commerce Lexington that became law, significantly impacting the Greater Lexington business community.

Commerce Lexington continues to monitor ongoing federal budget cuts, Tax Cuts and Jobs Act of 2017 extensions, and tariff announcements. On April 2, 2025, the White House imposed a variety of new tariffs, from a universal baseline tariff to nation, product, and commodity specific duties (Executive Order).

What You Need to Know:

• There is a 10% "reciprocal" baseline tariff. These are across-the-board levies on all imports, effective April 5, 2025. 
• On April 9, the Trump Administration announced a 90-day pause on a proposed “discounted reciprocal tariff” set to affect 57 nations. These tariffs, targeting countries identified by the White House as engaging in unfavorable trade practices, included rates such as 24% on Japan and 20% on the European Union. The pause allows for ongoing negotiations between the Administration and the affected countries to address trade concerns.
• Following waves of initial and retaliatory tariffs between the U.S. and China, the rate on most imports from China will be 145% when accounting for the International Emergency Economic Powers Act (IEEPA) border security and fentanyl tariffs. China retaliated with their own duties on U.S. imports with a 125% rate effective April 11. On that same date, U.S. Customs and Border Protection released revised guidance, exempting certain products—such as smartphones and semiconductor chips—from reciprocal tariffs on Chinese imports.
• Canada and Mexico are exempt from the proposed reciprocal tariff regime. However, most imports from these countries face a 25% tariff due to concerns raised by President Trump regarding their roles in the fentanyl crisis and illegal immigration. Compliant goods covered under the United States-Mexico-Canada Agreement (USMCA) remain eligible for exemptions.
• Trump’s 25% tariffs on foreign-made automobiles took effect April 3, 2025. Auto parts will be included in this 25% rate effective May 3. 
• President Trump’s Administration is considering or discussing the inclusion of copper, lumber, pharmaceuticals, and semiconductors in the evolving tariff policies.
• The Tax Foundation maintains a Trump Administration tariff timeline and further details regarding their economic effects.
• The U.S. Chamber of Commerce provides further context of how broad-based tariffs put U.S. growth at risk.

​In response to a state law, Lexington’s planning staff is proposing an ordinance that would add cost and bureaucracy to the planning process. This proposed ordinance, which is currently being considered by the Planning Commission on April 10 before going before the Council, would impede future distinctive local developments similar to Southland Drive, the Distillery District, Turner Commons and National Avenue.
 
Commerce Lexington is joining with other business associations to oppose the current 50+ page draft of the HB 443 Zoning Ordinance Text Amendment (PLN-ZOTA-25-00001).  This proposal far exceeds the legislative intent of HB 443, enacted during the 2024 Regular Session of the Kentucky General Assembly.  HB 443 aimed to streamline local development processes by removing subjective standards, thereby simplifying compliance for employers and developers.