Bulwark Takes Trump’s Trade Wars Are Crushing America’s Bourbon Industry
Dec 22, 2025
The hosts dive into the turmoil facing Kentucky's bourbon industry due to Trump's trade wars. They discuss the shocking closure of a Jim Beam distillery and the unpredictable boom-bust cycle created by aging timelines. The immediate impact of rising tariffs on U.S. spirits exports, particularly in Canada, is explored. Job losses and economic strain in Kentucky communities are highlighted, alongside the political fallout for GOP representatives. Finally, they ponder the unintended consequences of trade policies, pushing countries toward closer ties.
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Tariffs Distort Bourbon Planning
- Trump's tariffs have distorted bourbon producers' multi-year planning by shrinking foreign demand and prompting conservative inventory forecasts.
- Catherine Rampell links steep declines in exports, like Canada's, to trade tensions that make future demand unpredictable.
Canada Market Collapse Hit Bourbon Hard
- U.S. bourbon exports to Canada plunged dramatically, with Distilled Spirits Council citing an 85% drop in a quarter.
- Sonny Bunch warns this collapse harms Kentucky jobs and communities tied to distilleries like Jim Beam.
China Fueled A Prior Bourbon Boom
- Sonny Bunch recounts past bourbon booms driven by China and the debate over reducing proofs to stretch supply.
- He notes the recent Chinese slowdown and falling imports have eased that specific pressure on availability and price.