- Bourbon has been distilled on this location for practically 100 years.
- Making bourbon requires following particular guidelines.
While you add prices to a product, shoppers are inclined to migrate to cheaper choices. That is what’s taking place to American liquor manufacturers as tariffs have compelled different international locations to chop again on or just cease importing U.S. liquor.
“Exports of U.S.-made liquor fell sharply in the second quarter of 2025 as tariffs imposed under President Donald Trump took hold, according to the Distilled Spirits Council of the United States (DISCUS).
- The American Distilled Spirits Exports 2025 Mid-Year Report showed declines were particularly steep in exports to key markets including the European Union (EU), Canada, United Kingdom (UK) and Japan.
- The EU accounted for half of all U.S. spirits exports in 2024, and collectively, these four markets represented 70% of total exports by value.
“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.
Canada has stopped buying American liquor
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. C
- Canada remains the only key trading partner to retaliate against U.S. spirits.
U.S. spirits exports experienced notable declines across all key international markets. Exports to the EU — the U.S. spirits industry’s largest market — fell 12% to $290.3 million, while exports to the UK dropped 29% to $26.9 million and those to Japan decreased 23% to $21.4 million,” shared DISCUS.
Jim Beam makes an enormous choice
Jim Beam has determined to personal manufacturing in Completely happy Hole in Clermont, Kentucky on Jan. 1 by means of 2026, in response to Kentucky.com.
Suntory Holdings, the bourbon’s father or mother model, shared an announcement making an attempt to justify that call.
“We are always assessing production levels to best meet consumer demand and recently met with our team to discuss our volumes for 2026,” in response to an announcement from the corporate.
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The corporate will nonetheless distill some merchandise in different areas.
“We’ve shared with our teams that while we will continue to distill at our (Freddie Booker Noe) 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,” it added.
Bourbon should be made utilizing strict guidelines.
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A quick historical past of Jim Beam
- Roots of the model return to 1795, when Jacob Beam offered his first barrels of whiskey in Kentucky, the start of what would turn into Jim Beam bourbon, in response to Jim Beam.
- After Prohibition ended, James Beauregard “Jim” Beam rebuilt the household distillery in Clermont in 1935, establishing the James B. Beam Distilling Co. at Completely happy Hole Highway because the central manufacturing web site, reported WhiskyCast.
- Completely happy Hole Highway produces Jim Beam bourbons and attracts many guests as a part of the Kentucky Bourbon Path, inviting visitors to find out about bourbon’s historical past and craftsmanship, in response to Kentucky Bourbon Path.
- The Clermont distillery on Completely happy Hole Highway turned the flagship facility for Jim Beam’s bourbon manufacturing and stays a core web site for making the model’s iconic spirits.
- In 2012, the Jim Beam American Stillhouse opened at 526 Completely happy Hole Rd., changing a extra modest customer heart with a bigger, interactive vacation spot, in response to The Bourbon Babe.
- The American Stillhouse is designed to showcase the bourbon-making course of (from mash to barrel) with reveals, tasting experiences, and excursions of the grounds, added Jim Beam.
- The positioning additionally contains the James B. Beam American Outpost, a customer hub celebrating over 200 years of Beam household bourbon historical past with tastings and shows, shared GoToLouisville.
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What makes a whiskey a bourbon?
- Bourbon is a kind of American whiskey outlined by U.S. regulation — it should comply with particular requirements set within the Federal Requirements of Id for Distilled Spirits (27 CFR §5) to make use of the identify “bourbon.”
- To be labeled as bourbon, the whiskey should be produced within the U.S. This contains any state (not simply Kentucky).
- At the very least 51% corn within the mash invoice: Bourbon’s grain combination (known as a mash invoice) should comprise no less than 51 % corn, which supplies it its attribute sweetness.
- Aged in new, charred oak barrels: Bourbon should be matured in new charred oak containers. Used or totally different barrels don’t meet the authorized definition.
- No minimal age for primary bourbon: There’s no minimal growing old requirement for a spirit to be known as bourbon within the U.S. It merely should be put into new charred oak. Nevertheless, merchandise labeled “Straight Bourbon” should be aged no less than 2 years.
- Distilled to not more than 160 proof (80% ABV): This restrict helps retain grain character within the spirit.
- Barreled at not more than 125 proof (62.5% ABV): Bourbon should enter the barrel for growing old at or beneath this stage.
- Bottled at a minimal of 80 proof (40% ABV): Bourbon should be bottled at or above this alcohol stage.
Supply: Kentucky Distillers’ Affiliation
“Some refer to the Bourbon regulations as a ‘purity law’ for whiskey. That’s because, under the rules, Bourbon is not allowed to include additives such as flavorings, colorings, or extra sugar. What ends up in the bottle is the fermented and distilled grain spirit, modified only by time in new oak, water to reach legal bottling proof, and nothing else,” IWS.TV shared.
Why Jim Beam’s distillery pause issues
- Commerce coverage is reshaping U.S. exports: Tariffs and retaliatory actions are decreasing demand for American spirits in key international markets, placing stress on even essentially the most established manufacturers.
- A pause at an iconic distillery indicators broader stress: When a 230-year-old bourbon model slows manufacturing, it highlights how international commerce tensions can have an effect on legacy American producers.
- Native and supply-chain impacts: Diminished distillation can ripple by means of jobs, agriculture, tourism, and regional economies tied to bourbon manufacturing.
- Shopper decisions are shifting: Larger costs overseas are pushing worldwide consumers towards non-U.S. spirits, threatening long-term market share for American manufacturers.
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