New York (Parliament Politics Magazine) – Whisky maker Jim Beam plans to halt production at its Kentucky site in 2026 due to tariffs and market uncertainty, while keeping other facilities open.
According to Lauren Almeida of The Guardian, Jim Beam’s producer announced it will halt operations at its main Kentucky site for all of 2026.
What did Jim Beam say about pausing its Kentucky distillery in 2026?
In a statement, Jim Beam confirmed it will remain closed while the company takes the “opportunity to invest in site enhancements.”
It said,
“We are always assessing production levels to best meet consumer demand and recently met with our team to discuss our volumes for 2026.”
The announcement comes as US whiskey distillers deal with uncertainty amid President Donald Trump’s trade tariffs and declining alcohol consumption.
According to the Kentucky Distillers’ Association, over 16 million barrels of bourbon were in state warehouses, marking a new record.
The KDA stated that distillers could face a “crushing” $75m tax bill on their inventory this year, due to state charges on ageing barrels of spirits.
Jim Beam confirmed it is reviewing workforce plans during the production pause and is in discussions with its workers’ union.
The firm’s other Kentucky operations, including a second distillery and its bottling and warehouse facilities, will remain open next year, and the visitor centre will also stay open.
The Japanese drinks company Suntory Global Spirits, owner of Jim Beam, has a global workforce exceeding 6,000, with more than 1,000 based in Kentucky.
Suntory, famous for its single malt whiskies, also produces Haku vodka, Sipsmith gin, and soft drinks including Orangina and Lucozade. It bought the US producer of Jim Beam in 2014 for $16bn, securing its place among the leading global spirits companies.
In September, the company’s chief executive, Takeshi Niinami, resigned after authorities raided his home in connection with an investigation into illegal supplements.
Niinami, who has denied all allegations, joined Suntory in 2014 as the first executive from outside the founding family, after 12 years as CEO of convenience store chain Lawson.
How are Donald Trump’s tariffs impacting the global spirits industry?
US tariffs under President Trump have created uncertainty in the spirits industry this year. In March, several Canadian provinces removed American spirits from shelves, though some have since resumed buying US alcohol.
According to the Scotch Whisky Association, UK whisky producers face weekly costs of £4m from a 10% tariff on US exports.
Irish whiskey faces a 15% tariff under EU trade rules, but whiskey made in Northern Ireland, which belongs to the UK, may face the lower 10% UK rate.
A 15% tariff now applies to Japanese whisky, after earlier 2025 plans had threatened to raise rates to 24%, which were later changed.
Chinese spirits faced “reciprocal” tariffs of up to 125% early in the year, but these were reduced in May 2025 to a 10% baseline with a temporary 20% emergency tariff for 90 days.