LOUISVILLE, Ky. — The renowned bourbon producer Jim Beam is suspending operations at its Clermont, Kentucky distillery for a minimum of one year. This decision comes as the whiskey industry grapples with tariffs imposed by the previous U.S. administration and a dip in demand for products that require years of maturation.

Owned by Suntory Global Spirits, Jim Beam aims to pause activities at its primary distillery on the James B. Beam campus in Clermont to dedicate resources to “site enhancements,” according to a statement provided to CNN and The Associated Press.

Despite the pause, distillation will persist at the Fred B. Noe craft distillery in Clermont and the Booker Noe distillery situated in Boston, Ky.

“We continually evaluate production volumes to align with consumer demand and recently held discussions with our team regarding our targets for 2026,” the company stated in the release shared with CNN on Sunday.

Suntory Global Spirits has not announced layoffs. More than 1,000 people are employed across its Kentucky sites, according to the company.

The company says bottling and warehousing will continue in Clermont.

Bourbon makers have to gamble well into the future. Jim Beam’s flagship bourbon requires at least four years of aging in barrels before being bottled.

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.

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

James B. Beam Distilling Co. sent the following statement to WHAS11 News:

“We are always assessing production levels to best meet consumer demand and recently met with our team to discuss our volumes for 2026. We’ve shared with our teams that while we will continue to distill at our FBN 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. Our visitor center at the James B. Beam campus remains open so visitors can have the full James B. Beam experience and join us for a meal at The Kitchen Table.”

The Associated Press contributed to this report.