Jim Beam to Pause Distillation Amid Lost Exports from Trade Wars

LEXINGTON, Ky., Dec. 28, 2025 /PRNewswire/ — Jim Beam announced it will pause distillation at its main distillery on the James B. Beam campus for the year 2026, according to a report by the Lexington Herald-Leader.

This decision comes as the whiskey industry faces challenges stemming from former President Donald Trump’s trade policies. In a turbulent economic environment, Jack Daniel's has also reported declining profits recently.

The American liquor lobby expressed concerns as President Trump initiated tariffs against Canada, resulting in the removal of U.S. spirits from Canadian shelves. Although Canada lifted its retaliatory tariffs on U.S. spirits, most provinces continue to impose sales bans, severely affecting the export market.

In a damning statistic, exports of U.S. spirits to Canada plummeted by 85%, falling below $10 million in the second quarter of 2025. Industry experts note this significant loss underscores the broader impact of changing trade relationships.

The trade conflicts initiated by Trump have sparked ongoing discussions within the industry, as manufacturers and distillers work to navigate the aftermath. Jim Beam’s decision to halt production reflects the direct effects of these economic challenges and the need to adapt in uncertain times.

Jim Beam officials have not provided further comment regarding future plans or potential reopening timelines.