In a shocking turn of events, a historic Kentucky bourbon distillery has closed its doors. Canada launched revenge tariffs against US goods, and this move hit the bourbon industry hard. First, let’s dive into what happened and why it matters for bourbon lovers everywhere.
The Tariff Battle Heats Up
The US started it all by slapping tariffs on Canadian products like steel and aluminum. Canada fought back quickly. They targeted American whiskey, including Kentucky bourbon, with their own 25% tariffs. Moreover, this made US bourbon too expensive for Canadian buyers. Sales dropped fast, and one old distillery in Kentucky couldn’t keep up.
This distillery, known for its rich history dating back over 100 years, crafted award-winning bourbon. However, the new tariffs crushed exports to Canada—a key market. Workers packed up last week, and the lights went dark. Owners blame the trade war directly for the shutdown.
Why Bourbon Feels the Pain
Kentucky produces most of the world’s bourbon. In fact, over 95% comes from the Bluegrass State. Canada buys a big chunk of it each year. When tariffs kick in, prices skyrocket. For example, a bottle that cost $30 now sells for nearly $40 in Canada. Customers switch to local whiskey or cheaper options.
Distilleries rely on exports for survival. Smaller, historic ones like this suffer most. They lack the cash to weather the storm. Meanwhile, big players pivot to other markets, but not everyone can.
Picture this: Barrels aging in rickhouses since the 1800s. This distillery helped shape Kentucky’s bourbon legacy. It survived Prohibition and booms in demand. Yet, today’s trade fights proved too much. Employees shared sad stories on social media. One said, “We’ve poured our hearts into this place for generations. Now it’s over.”
