The Wall Street Journal’s conservative editorial board complained Friday that America’s whiskey industry is reeling from the consequences of President Donald Trump’s tariff policies, as major distillers make dramatic moves to weather the economic storm.
Jim Beam announced it would “pause distillation at our main distillery on the James B. Beam campus for 2026,” while Jack Daniel’s reported declining profits amid what the company characterized as a “challenging economic environment.”
While the Journal acknowledged outside factors, including consumer behavior, played a role, the editors heaped blame on Trump.
“President Trump’s trade wars aren’t helping,” the board said.
After all, Trump triggered a tariff dispute with Canada, which responded by yanking U.S. spirits from shelves. Although Canada has since lifted its retaliatory tariffs on American spirits, the practical impact remains severe.
“While Canada recently removed its retaliatory tariffs on U.S. spirits, the ban on U.S. spirit sales remains in place in most Provinces,” the American liquor lobby reported in October. Exports to Canada plummeted 85 percent, dropping below $10 million in the second quarter.
Similarly, the EU has repeatedly used alcohol exports as leverage in trade disputes, threatening 50 percent tariffs on American whiskey this year, which was ultimately averted.
“But this kind of on-again, off-again uncertainty is hard on all kinds of business,” the Journal said.
The aging process, key to making whiskey, only compounds these challenges, with the Kentucky Distillers’ Association groaning, “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.”
While changing consumer preferences have contributed to softer demand, the industry has traditionally adapted to market swings. What makes today’s challenge insurmountable is the Trump administration.
“The difference now is that it must also manage around Mr. Trump’s tariffs and their consequences. This is harm inflicted on American workers by their own government,” the board concluded.
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