Jim Beam Bourbon/Whiskey Shuttering Production for 2026

Ok, now it's getting personal ... and a matter of American pride.

The trade war and the imposition of new tariffs have come for one of the most distinctly American of products -- as homegrown as the blues, jazz, and rock-n-roll -- bourbon. Bourbon is a uniquely American spirit in that it can only be made within the boundaries of the United States, much like sparkling white wine can only be called champagne if it comes from that specific wine growing region of France. And the world thirsts for American bourbon, most specifically the country of Canada. However, in a shocking news Jim Beam Distillery has announced it will cease new production of bourbon and whiskey for the entirety of 2026:

The maker of Jim Beam bourbon whiskey will halt production at its main site in Kentucky for all of 2026. The company said in a statement it would close its distillery in Clermont until it took the “opportunity to invest in site enhancements”.

“We are always assessing production levels to best meet consumer demand and recently met with our team to discuss our volumes for 2026,” it said.

It comes as whiskey distillers in the US face uncertainty around Donald Trump’s trade tariffs, as well as declining rates of alcohol consumption. In October, the Kentucky Distillers’ Association (KDA) trade body said there was a record amount of bourbon in warehouses across the state – more than 16m barrels.

One of the primary reasons for the halt in production is the Canadian market. Granted, other factors are contributing as well, mainly an overall decrease in alcohol consumption nationally and worldwide. 

"After celebrating a record year for U.S. spirits exports in 2024, this new data is very troubling for U.S. distillers,” DISCUS CEO Chris Swonge said in a press release. “Persistent trade tensions are having an immediate and adverse effect on U.S. spirits exports. There’s a growing concern that our international consumers are increasingly opting for domestically produced spirits or imports from countries other than the U.S., signaling a shift away from our great American spirits brands.” Sales are down, and that’s very bad news for one of the most iconic American bourbon brands, Jim Beam. The 230-year-old brand has decided to close down its distillery, which has been in regular operation since prohibition

• Trump’s trade war has particularly angered Canada, which has led to many Canadians boycotting American products.Swonger said nowhere is this shift more pronounced than in Canada, where U.S. spirits exports plummeted 85%, falling below $10 million in the second quarter of 2025.
• U.S. spirits sales in Canada declined 68% in April 2025, whereas sales of Canadian and other imported spirits rose around 3.6% each.
• Canada removed its retaliatory tariff on U.S. spirits on Sept. 1, but the majority of Provinces continue to ban American spirits from their shelves.
• Canada remains the only key trading partner to retaliate against U.S. spirits.