By Auzinea Bacon, CNN

(CNN) — Popular Kentucky bourbon maker Jim Beam plans to pause production at its main distillery on January 1, according to the James B. Beam Distilling Co.

The decision comes as Kentucky faces an increasing supply of aging barrels and uncertainty over President Donald Trump’s trade wars.

Kentucky has an all-time high of 16.1 million aging barrels of bourbon in its warehouses, the Kentucky Distillers’ Association said in October. Distillers are paying for that supply, since the state charges taxes on aging barrels of spirits. Kentucky distillers paid $75 million in aging barrel taxes this year, up 27% from 2024, according to the trade group.

Jim Beam, which is owned by Suntory Global Spirits, intends to pause production at its main distillery on the James B. Beam campus in Clermont, Kentucky, while it invests “in site enhancements,” according to a company statement. It will continue distilling at its Fred B. Noe craft distillery in Clermont and the Booker Noe distillery in Boston, Kentucky.

“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 the statement shared with CNN on Sunday.

Suntory Global Spirits has not announced layoffs. It employs more than 1,000 people across its Kentucky sites, according to the company.

Bottling and warehousing will continue in Clermont, according to the statement, and Jim Beam will continue talks with employees represented by the United Food and Commercial Workers union as it determines the impact on its workforce.

Union representatives have not responded to CNN’s request for comment.

Alcohol on the front lines of the trade war

Whiskey and spirit makers have had to deal with retaliatory tariffs from the trade war sparked by Trump’s tariffs, and with consumers pulling back on discretionary spending amid an affordability crisis.

The trade fallout between the United States and Canada has also impacted whiskey and spirit makers. In March, Canadian officials banned American spirits from stores, a rule that is still in place in some provinces.

The European Union in March threatened to increase tariffs on American whiskey to 50% in retaliation for Trump’s steel and aluminum tariffs, but in August the EU announced a six-month suspension of retaliatory tariffs on US imports, including distilled spirits, wine and used barrels.

“Long-term planning for a product that won’t be ready for years is already tough enough. We need the certainty of tariff-free trade for America’s only native spirit to flourish,” Eric Gregory, president of the Kentucky Distillers’ Association, said in October.

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