Kevin O’Leary: Trump’s Trade Threats Behind Jim Beam Distillery Shutdown

Key Takeaways

• The Jim Beam distillery in Clermont, Kentucky, is temporarily closing due to trade tensions between the US and Canada.
• Canadian businessman Kevin O’Leary blames the closure on the trade war between the two countries and calls for an end to tariffs.
• US spirit exports to Canada have plummeted 85% in the second quarter of 2025, with total US spirit exports dropping 9% compared to last year.
• The Distilled Spirits Council of the United States attributes the drop in exports to "persistent trade tensions".
• President Donald Trump claims that his tariffs are responsible for the US’s economic growth, despite criticism from business leaders like O’Leary.

Introduction to the Issue
The current trade tensions between the US and Canada have led to a significant impact on the American whiskey industry, with Jim Beam announcing the temporary closure of its distillery in Clermont, Kentucky. The company plans to "invest in site enhancements" during the closure, which is set to last for one year starting on January 1, 2026. This move has been blamed on the trade war between the two countries, with many Canadians boycotting American liquor in response to President Donald Trump’s tariffs and his suggestion that Canada should be the 51st state.

Kevin O’Leary’s Comments
Canadian businessman and Shark Tank judge Kevin O’Leary has spoken out against the trade war, calling it a "self-inflicted mess" and stating that "playing tariff games between neighbors is stupid and completely unnecessary." O’Leary believes that the tariffs are hurting businesses on both sides of the border and that there should be no tariffs between allies. He has also emphasized the importance of Canada and the US working together, citing Canada’s abundance of natural resources that are essential to the US. O’Leary’s comments highlight the need for cooperation between the two countries to resolve the trade tensions and prevent further damage to the economy.

Impact on the US Spirit Industry
The trade tensions between the US and Canada have had a significant impact on the US spirit industry, with exports to Canada plummeting 85% in the second quarter of 2025. Total US spirit exports have also dropped 9% compared to last year, according to a report by the Distilled Spirits Council of the United States. The organization’s CEO, Chris Swonger, attributes the drop in exports to "persistent trade tensions" and expresses concern that international consumers are increasingly opting for domestically produced spirits or imports from countries other than the US. This shift away from American spirits brands could have long-term consequences for the industry.

President Trump’s Response
Despite the criticism from business leaders like O’Leary, President Trump continues to claim that his tariffs are the best way forward for the American economy. In a recent post on Truth Social, Trump stated that "The TARIFFS are responsible for the GREAT USA Economic Numbers JUST ANNOUNCED…AND THEY WILL ONLY GET BETTER!" However, the temporary closure of the Jim Beam distillery and the drop in US spirit exports suggest that the trade war is having a negative impact on the economy. The president’s insistence on continuing the tariffs has been met with opposition from many in the business community, who argue that it is hurting American businesses and workers.

Conclusion
The temporary closure of the Jim Beam distillery in Clermont, Kentucky, is a symptom of the larger trade tensions between the US and Canada. The drop in US spirit exports and the shift away from American spirits brands are concerning trends that could have long-term consequences for the industry. As the US and Canada continue to navigate the trade war, it is essential for business leaders and politicians to work together to find a solution that benefits both countries. The comments from Kevin O’Leary and the data from the Distilled Spirits Council of the United States highlight the need for cooperation and the importance of resolving the trade tensions to prevent further damage to the economy.