Jim Beam is pausing production at its Clermont, Kentucky distillery for about a year, citing tariffs tied to the Trump administration and weakening demand for bourbon, a product that requires years of aging.

Bottling, warehousing, and the visitor center will remain open, while the company’s larger distillery in Boston, Kentucky will continue operating.

The slowdown comes as U.S. spirits exports fell 9% in Q2 2025, with exports to Canada dropping 85% amid a boycott.