“Go MAGA, go broke”: Iconic Jim Beam distillery in Kentucky to shut down in 2026 as local jobs and small businesses hang in the balance

One of Kentucky’s biggest bourbon producers is preparing to hit the brakes on whiskey production as the fallout from President Donald Trump’s trade policies continues to ripple through the state’s signature industry. Jim Beam, one of the largest American whiskey makers in the world, plans to pause distillation at the end of the year at its Happy Hollow operation in Clermont, shutting down production from Jan. 1 through 2026.

The visitor center at the James B. Beam campus will remain open for Kentucky Bourbon Trail tourists, but the stills at the main distillery will go quiet. Jim Beam confirmed it will halt bourbon production at its Clermont, Ky., facility through 2026, according to a company statement.

“We are always assessing production levels to best meet consumer demand and recently met with our team to discuss our volumes for 2026,” the company said in a statement. “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.”

Bottling and warehousing operations will continue in Clermont. The Jim Beam distillery outside Bardstown remains one of the Kentucky Bourbon Trail’s most popular stops, even as production itself is put on hold.

The news was first reported by the Louisville Business Journal.

The pause comes as Kentucky’s $9 billion bourbon industry struggles with oversupply and weakening demand — problems made worse by Trump’s renewed trade war. Industry-wide production has been slashed by more than 55 million proof-gallons, or over 28%, through August, marking the lowest output since 2018.

Exports have also taken a major hit. Canada, one of the most important foreign markets for American whiskey, has been boycotting U.S. spirits since March in retaliation for Trump’s tariffs. As a result, U.S. whiskey sales to Canada are down more than 60% through October, a blow that’s landing squarely on red-state producers who overwhelmingly backed Trump.

Other major players have already felt the squeeze. Brown-Forman, the company behind Jack Daniel’s Tennessee Whiskey, announced layoffs and shorter production pauses earlier this year as the downturn spread.

So far, Jim Beam has not filed a layoff notice with the state of Kentucky, according to the state’s WARN Act database, and it remains unclear how many jobs could ultimately be affected. The Clermont facility is Jim Beam’s primary production site in Kentucky, responsible for flagship brands as well as Basil Hayden, Knob Creek, and others.

The distillery is operated by Suntory Global Spirits, whose Japanese parent company also owns Maker’s Mark. Distilling at Maker’s Mark will not be impacted, a Suntory spokesperson said.

As of 2024, Jim Beam employed nearly 1,500 people in Kentucky. Suntory, which acquired Jim Beam in 2014, says it has invested more than $540 million in its Kentucky operations, and that more than 100,000 visitors tour the James B. Beam Distilling Co. and Maker’s Mark each year.

For a state that reliably votes MAGA and markets bourbon as an economic lifeline, the pause is another reminder that Trump’s tariffs don’t just hit blue-state ports or coastal industries — they’re landing hard in Kentucky, right where his supporters live and work.