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Bourbon maker Jim Beam is halting production at one of his distilleries kentucky For at least a year, as the whiskey industry deals with tariffs trump Administration and a decline in demand for a product that requires several years before it is ready.
Jim Beam said the decision to stop making bourbon at its Clermont location in 2026 will give the company time to invest in improvements to the distillery. James B. The Beam Distilling Company Visitors Center and restaurant, as well as the on-site bottling and warehouse, will remain open.
The company has a big distillery bostonKentucky, will continue to operate, the company said.
“We are always assessing production levels to best meet consumer demand,” the company said in a statement. It says they are talking with the distillery union to determine if there will be layoffs or other cuts.
Bourbon makers will be taking a smart gamble on the future. Jim Beam’s flagship bourbon requires at least four years of aging in barrel before bottling.
Whiskey makers have been dealing with recurring debates over tariffs in Europe and other countries CanadaWhere the boycott started after the Trump administration suggested merging the country with America.
total export of American Spirits sales declined 9% in the second quarter of 2025 compared to a year earlier, according to the Distilled Spirits Council of the United States. The most dramatic decline came in U.S. spirits exports to Canada, which fell 85% in the April-to-June quarter.
Bourbon production has increased significantly in recent years. As of January, about 16 million barrels of bourbon was aging in Kentucky warehouses, according to the Kentucky Distillers Association — more than triple the amount 15 years ago.
But sales data and polling show that Americans are drinking less alcohol than they have in decades.
About 95% of the bourbon produced in America comes from Kentucky. The trade group estimates the industry brings more than 23,000 jobs and $2.2 billion to the state.