Jim Beam, a renowned name in bourbon production, is set to temporarily suspend operations at one of its key distilleries in Kentucky, a decision reflecting broader challenges within the whiskey industry. The company announced that this pause, scheduled for 2026, will last for at least a year as they navigate the impact of tariffs imposed during the Trump administration and a decreased demand for bourbon, which necessitates years of aging before hitting the shelves.

During this hiatus, Jim Beam plans to focus on enhancements at their Clermont distillery. Despite the production halt, the site will still maintain its bottling and warehouse operations, in addition to welcoming visitors at the James B. Beam Distilling Co. visitors center and restaurant.

Meanwhile, the company reassured that its larger distillery located in Boston, Kentucky, will remain fully operational, ensuring that production continues without interruption at that facility.

In a statement, Jim Beam emphasized their ongoing efforts to align production levels with consumer demand. They are currently engaged in discussions with the distillery’s union to assess the potential need for layoffs or other workforce adjustments during this period.

The nature of bourbon production requires significant foresight, as Jim Beam’s flagship product must age in barrels for at least four years before it can be bottled and sold. This long-term commitment adds a layer of complexity to production decisions in an ever-changing market.

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

Bourbon production has grown significantly in recent years. As of January, there were about 16 million barrels of bourbon aging in Kentucky warehouses — more than triple the amount held 15 years ago, according to the Kentucky Distillers’ Association.

But sales figures and polling show Americans are drinking less than they have in decades.

About 95% of all bourbon made in the U.S. comes from Kentucky. The trade group estimated the industry brings more than 23,000 jobs and $2.2 billion to the state.