Jim Chasteen and Charlie Thompson, former roommates at the University of Georgia, ventured into the whiskey business by founding American Spirit Whiskey (A.S.W.) after experimenting with distilling at home. They began their journey in the late 1990s, driven by the idea of creating a rye whiskey that wasn’t widely available. Initially armed with only a makeshift still and a book called The Business of Spirits, their enthusiasm gradually translated into a successful craft distillery. Established formally in 2016, A.S.W. quickly gained recognition, earning numerous awards at the San Francisco World Spirit competition—the largest event in the industry.

Chasteen attributes their success to a convergence of cultural trends that favored whiskey, particularly in the South. Though they faced challenges and learned through trial and error, they decided to pursue distilling full-time, raising nearly two million dollars from friends to launch their distillery. Their expansion was rapid, with plans for a third location at Atlanta’s busy airport. However, this momentum came to a halt with the introduction of Donald Trump’s tariffs in early 2025. Chasteen’s frustration was palpable as he described the impact these tariffs had on their plans to penetrate international markets.

In 2024, American whiskey exports reached approximately $1.3 billion, and A.S.W. was poised to capitalize on this growing market. Chasteen had invested significantly in securing trademarks for their brands, anticipating a successful venture into countries like China, Japan, and the European Union. However, retaliatory tariffs imposed by China and threats from the E.U. stifled their ambitions, complicating the landscape for craft distillers like A.S.W. and casting uncertainty over the industry.

Chris Swonger, president of the Distilled Spirits Council of the United States, echoed Chasteen’s concerns, highlighting the anxiety within the industry. As small businesses feel the burden of increasing tariffs, Chasteen and his team remain cautiously optimistic; they secured funding just before the tariffs took effect, allowing them to weather the storm while exploring domestic markets. Despite the challenges, they aim to adapt their strategy, focusing on growth within the United States, even humorously considering that increased alcohol consumption during the pandemic could work to their advantage.

A.S.W.’s story reflects the broader struggles and resilience of craft distillers amidst a complex economic environment influenced by shifting trade policies.