Another day, another casualty of Donald Trump’s ongoing and reckless trade war. This time, Kentucky bourbon-maker Jim Beam announced it is shutting down production of its main distillery for at least one year. 

A reminder: U.S. distillers have faced retaliatory import taxes on their goods after Trump’s so-called “Liberation Day” announcement saw the U.S. imposing tariffs on most countries around the world. Additionally, major trading partners, including Canada, have been boycotting American spirits since March in retaliation for President Trump’s ongoing trade war. 

U.S. whiskey sales to Canada are down more than 60% through October. 

In response, DNC Deputy Executive Director Libby Schneider released the following statement: 

“Donald Trump’s trade war has been a barrage of reckless actions that have put American industries and working families on the brink. Trump has sent Kentucky’s economy spiraling, and Jim Beam’s announcement that it is shuttering its main Kentucky distillery is yet another example of Trump’s chaos and its consequences. Trump promised a ‘manufacturing renaissance’ and a ‘golden age.’ Instead, factories are closing, and we’re heading toward a recession. American workers deserve better.”

Read more below:

Lexington Herald-Leader: Major Kentucky bourbon maker Jim Beam shuttering distillery for 2026

By Janet Patton and Karla Ward

One of Kentucky’s largest bourbon producers apparently is pausing whiskey production at the end of the year. Jim Beam, which is one of the largest makers of American whiskey in the world, is planning to shut down production in Happy Hollow in Clermont Jan. 1 through 2026.

The move comes as Kentucky’s $9 billion bourbon industry grapples with a glut of whiskey and a slump in demand at home.

In response, the industry has pulled back production by more than 55 million proof-gallons (an industry unit of measurement) or more than 28% through August, the lowest level since 2018.

At the same time, exports have been curtailed to major trading partners; Canada has been boycotting American spirits since March in retaliation for President Trump’s ongoing trade war and U.S. whiskey sales to that country are down by more than 60% through October.

Other Kentucky companies including Jack Daniel’s Tennessee Whiskey maker Brown-Forman also have announced layoffs or shorter pauses in production earlier in the year.

As of 2024, Jim Beam had nearly 1,500 Kentucky employees, according to the company.

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