By Sam Barron | Monday, 22 December 2025 04:13 PM EST
Jim Beam has announced it will halt production at one of its Kentucky distilleries for at least a year as the whiskey industry grapples with tariffs imposed by the Trump administration and declining demand for its product.
The company stated that the decision to suspend bourbon production at its Clermont facility in 2026 will provide time for investments at the distillery. Bottling and warehouse operations, along with the James B. Beam Distilling Co. visitors center and restaurant, will remain open. Jim Beam confirmed its larger distillery in Boston, Kentucky, will continue operating.
“We are always assessing production levels to best meet consumer demand,” the company said in a statement.
Jim Beam indicated it would hold discussions with the distillery union to determine whether layoffs or other workforce reductions might occur.
Jim Beam’s flagship bourbon requires at least four years of aging in barrels before being bottled. Whiskey makers have been caught in back-and-forth disputes over tariffs in Europe and Canada, where a boycott began after President Donald Trump suggested annexing the country into the United States.
Overall U.S. spirits exports fell 9% in the second quarter of 2025 compared with the same period last year, according to the Distilled Spirits Council of the United States. The most dramatic decline came in exports to Canada, which dropped 85% during the April through June quarter.
While sales have fallen, bourbon production has grown significantly in recent years. As of January, there were approximately 16 million barrels of bourbon aging in Kentucky warehouses—more than triple the number held 15 years ago, according to the Kentucky Distillers’ Association. About 95% of U.S. bourbon comes from Kentucky, and the trade group estimates the industry contributes over 23,000 jobs and $2.2 billion annually to the state.
