Venerable American Bourbon Brand Faces Tariff Hardships

Globally recognized American bourbon brand Jim Beam is halting production at one of its distilleries in Kentucky for at least a year as the industry continues to navigate tariffs. 

“Whiskey makers are dealing with back-and-forth arguments over tariffs in Europe and in Canada, where a boycott started after the Trump administration suggested annexing the country into the U.S.,” according to The Associated Press. “Overall exports of American spirits fell 9% in the second quarter of 2025 compared to a year ago, according to the Distilled Spirits Council of the United States. The most dramatic decrease came in U.S. spirits exports to Canada, which fell 85% in the April-through-June quarter.”

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Jim Beam’s flagship bourbon requires at least four years of aging in barrels before being bottled, so the decision to halt production is significant. 

“Kentucky has an all-time high of 16.1 million aging barrels of bourbon in its warehouses, the Kentucky Distillers’ Association said in October,” according to CNN Business. “Distillers are paying for that supply, since the state charges taxes on aging barrels of spirits. Kentucky distillers paid $75 million in aging barrel taxes this year, up 27% from 2024, according to the trade group.”

Jim Beam, the country’s largest maker of bourbon, isn’t the only one making production adjustments. 

“In September, the global drinks company Diageo paused distillation at its Cascade Hollow facility in Tullahoma, Tenn., which produces George Dickel Tennessee whiskey,” according to The New York Times. “In January, Brown-Forman, the maker of whiskeys like Jack Daniel’s and Old Forester, announced it was laying off about 650 employees, or 12% of its work force, in the face of declining demand.”

In a statement, Jim Beam said that the pause would begin on Jan. 1. The facility produces about a third of the company’s annual output of approximately 26.5 million gallons. It also said it would continue production at its two other distilleries in Kentucky and would keep its bottling facility and visitor center open at the Clermont site.

“It did not say whether the workers at the distillery would be furloughed or moved to other facilities,” according to The New York Times.

1 comment about "Venerable American Bourbon Brand Faces Tariff Hardships".
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  1. Lisa Jeffries from Raleighwood Media Group + Raleighwood Event Group, December 26, 2025 at 12:35 p.m.

    This headline falls woefully short: tariffs matter—but they’re only one piece of a much larger picture. Spirits overall are facing declining consumption among younger consumers, competition from THC products, and a natural post-boom correction in American whiskey after years of rapid growth. Production pauses right now reflect smart inventory management in a cyclical business, not a loss of confidence in the category’s long-term strength. Consumer tastes evolve, volume shifts, and the strongest brands adapt without abandoning their core.

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