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One of the largest bourbon producers in the world has announced it’s pausing whiskey production at its major Kentucky distillery beginning Jan. 1, 2026, as sales falter due in part to President Donald Trump’s trade war with Canada.
Shortly after Trump announced his “liberation day” tariffs in Feb. 2025, Canada staged a boycott of American products, including spirits. Canadian provinces like Ontario and Quebec removed American liquor from shelves in protest, bringing U.S. sales to Canada down by more than 60%.
According to the Lexington Herald-Ledger, the U.S. Whiskey 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.”
In a statement, Jim Beam said, “We are always assessing production levels to best meet consumer demand and recently met with our team to discuss our volumes for 2026.”
The statement continued, “We’ve shared with our teams that while we will continue to distill at our (Freddie Booker Noe) craft distillery in Clermont and at our larger Booker Noe distillery in Boston, we plan to pause distillation at our main distillery on the James B. Beam campus for 2026 while we take the opportunity to invest in site enhancements.”
Relations between the U.S. and Canada show no signs of thawing any time soon. In late November, Canada’s Prime Minister Mark Carney declared, “This decades-long process of our ever-closer economic relationship between Canada and the United States has ended.”
Jim Beam has not announced any layoffs so far, but the employees’ union said they’re trying “to assess how best to utilize our workforce during this transition,” The Herald-Leader reported.
Jim Beam employs nearly 1,500 people in Kentucky, the company said.
Other manufacturers like Jack Daniel’s Tennessee Whiskey are also feeling the pinch, reporting $59 million in losses this year.
The Herald-Ledger reported that “much of the decline was due to Canada’s continued boycott of American spirits in the wake of President Trump’s trade war, but sales in the U.S. also fell, a sign of further economic uncertainty.”
The post Jim Beam Shutters Main Distillery For 2026 As Sales Falter Due To Trump Trade War first appeared on Mediaite.
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