Japanese-Owned Jim Beam Shuts Down for a Year Amid US-Canada Tariff War Fallout

Jim Beam to Halt Production at Main Distillery for One Year
"Plans to Invest in Facility Improvements During Suspension"
"Increased Inventory Management Costs Cited as Reason"

Bourbon whiskey manufacturer Jim Beam has announced that it will halt operations at its main distillery in Kentucky for the entire next year.

On December 22 (local time), outlets such as CNN and BBC reported, citing a statement from Jim Beam, that "production at the distillery within the James B. Beam campus in Clermont, Kentucky will be temporarily suspended starting January 1 next year." The company plans to use the suspension period to invest in facility improvements and other upgrades.

Bourbon whiskey manufacturer Jim Beam will halt operations at its main distillery in Kentucky for the entire next year. Photo to aid understanding of the article. Pixabay.

The BBC reported, "Distillers in Kentucky are facing uncertainty due to trade policies under U.S. President Donald Trump and other factors." During the shutdown, Suntory Global Spirits, the owner, and the labor union are negotiating workforce management plans. The brand is owned by Japanese beverage giant Suntory Global Spirits, which employs more than 1,000 staff at its Kentucky sites.

The decision is reportedly driven by the increased cost burden of managing higher inventories. According to the Kentucky Distillers' Association (KDA) in October, the amount of bourbon whiskey stored in warehouses across the state exceeded 16 million barrels, reaching an all-time high.

Kentucky imposes taxes even on bourbon whiskey that is still aging. The association stated, "Distillers have faced costs amounting to $75 million (110.0775 billion won) this year alone for aging barrels." This is a 27% increase compared to 2024. The sharp rise in inventory is also attributed to decreased demand resulting from the Trump administration's trade war.

U.S. liquor manufacturers have faced retaliatory import tariffs since President Trump announced so-called 'Liberation Day' in April, imposing tariffs on most countries worldwide. The BBC noted, "Trade tensions between the United States and Canada have also affected liquor sales," adding that "most Canadian provinces launched a boycott of American liquor earlier this year."