8 months ago
Whiskey tariffs hurt American distillers
American whiskey companies are having a tough time because of tariffs and other problems.
Jim Beam, a big whiskey company, is even closing its main factory for a whole year.
Other companies like Jack Daniel’s are also affected.
The tariffs that the Trump administration put in place are making it hard for these companies to sell their whiskey in other countries.
Also, there are too many barrels of whiskey waiting to be sold, and people aren’t buying as much as they used to.
This is making it hard for the companies to make money, and some are even having to let people go.
Politicians in Kentucky are blaming the tariffs for these problems.
Jim Beam is closing its main distillery in Clermont, Kentucky, for 2026 due to financial hardship.
Several iconic American whiskey brands, including Jack Daniel’s and Woodford Reserve, are affected by the economic slump.
Tariffs and counter-tariffs have led to a 9% decrease in American spirits exports in Q2 2025.
High barrel taxes and oversupply of aging whiskey are also contributing to the industry's problems.
Decreased demand due to economic downturn is causing sales to slump.
- Who
- American whiskey distillers, including Jim Beam, Jack Daniel’s, Old Forester, Woodford Reserve, Garrard County Distilling Co., Uncle Nearest
- What
- Financial hardship due to tariffs and other factors leading to closures and layoffs
- Where
- United States, primarily Kentucky and Tennessee
- When
- 2025-2026
- Why
- Tariffs, counter-tariffs, high barrel taxes, oversupply, and decreased demand
Key facts
- Brands Impacted
- Jack Daniel’s, Old Forester, Woodford Reserve, Garrard County Distilling Co., Uncle Nearest, Jim Beam
- Jim Beam Closure
- Main distillery in Clermont, Kentucky, closed for 2026
- Production Impact
- Distillery produces about a third of Jim Beam’s annual output (26.5 million gallons)
- Tariff Impact
- American spirits exports fell 9% in Q2 2025
- Barrel Taxes
- $75 million in aging barrel taxes in 2025, up 27% from 2024
- Barrel Supply
- 16.1 million aging barrels of bourbon in Kentucky
- Demand Decrease
- Sales have slumped due to economic downturn
- Political Blame
- Kentucky politicians blame Trump administration’s tariffs
Quotes
CBC News
A Canadian news organization
“ongoing challenges are strain in the liquor industry”
theweek.com
“part of the fallout of Trump’s trade war”
theweek.com
Rep. Morgan McGarvey (D-Ky.)
A Democratic representative from Kentucky
“hard to overstate just how devastating Trump’s tariffs are for America’s signature spirit”
theweek.com
“Thousands of Kentuckians power the bourbon industry — we will all feel the impact of this”
theweek.com
Brown-Forman
A company that produces Jack Daniel’s, Old Forester, and Woodford Reserve
“laying off about 650 employees, or 12% of its workforce, in the face of declining demand”
theweek.com
Jim Beam
The country’s largest bourbon manufacturer
“pause distillation at our main distillery on the James B. Beam campus for 2026 while we take the opportunity to invest in site enhancements”
theweek.com
The New York Times
A reputable news organization
“produces about a third of the company’s annual output of approximately 26.5 million gallons”
theweek.com
Kentucky Distillers’ Association
An association representing Kentucky's distillers
“all-time high of 16.1 million aging barrels of bourbon in its warehouses”
theweek.com
Bloomberg
A global financial news organization
“caused an oversupply of whiskey”
theweek.com
