The Whiskey Glut Upending America’s Bourbon Heartland

SPEAKER_1 (0:02)

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Daniel Bach (0:20)

The US puts arms sales to Taiwan on hold. Plus, weight loss drugs show a surprising ability to slow down cancer.

And we look at how the slowdown in alcohol sales is impacting the U.S.'s native spirit, bourbon.

Laura Cooper (0:35)

A lot of folks are trying to kind of recalibrate with taking their stills offline for a period of time and putting less liquid in barrels as the others come to maturity because they need to be able to figure out where they will sell that in the future.

Daniel Bach (0:49)

It's Friday, May 22nd. I'm Daniel Bach for The Wall Street Journal, filling in for Luke Vargas. And here is the AM Edition of What's News, the top headlines and business stories moving your world today.

House Republican leaders have yanked a plan to vote to restrict President Trump's ability to conduct military strikes against Iran. That's after it became clear that the resolution forced to the floor by Democrats would likely pass.

SPEAKER_1 (1:18)

People can't afford their groceries.

Marco Rubio (1:20)

Is that why you're pulling it?

SPEAKER_1 (1:21)

You guys don't have the guts of the bulls to do that.

SPEAKER_6 (1:23)

The House will be in order.

Daniel Bach (1:25)

Passage would have been seen as a rebuke of Trump and the war he started without seeking authorization from Congress. Opinion polls show most Americans are opposed to the war, which has led to rising energy costs and disrupted global supply chains. Trump and his allies have defended the war as necessary to deny Iran a nuclear weapon. The US is putting a planned arms sale for Taiwan on hold. Acting Secretary of the Navy Hung Kao told Congress that the munitions and the arms that were being sold to Taipei are going to be needed in Iran instead.

Jonathan Chang is the Journal's China Bureau Chief, and he says while this may be down to a lack of munitions, the timing is key, with the news coming just days after President Trump was in Beijing.

Jonathan Chang (2:11)

Certainly in Taiwan, this is going to be received with alarm because there was already this concern here that President Trump was breaking with US precedent and consulting China before making any possible arm sales to Taiwan. Certainly if you're sitting in Beijing, this is good news because whatever the reason, whether it's because President Trump does see this as a negotiating chip with Beijing, or whether or not it's because the Iran War has forced the US to have to redeploy its arms towards the Middle East rather than towards Taiwan, that's a good thing for Beijing.

Daniel Bach (2:46)

Hongkou told the Senate Appropriations Committee that arms sales to Taiwan would continue once the Trump administration deemed it appropriate. Meanwhile, the president has said the US will be sending 5,000 extra troops to Poland. It comes just days after the Pentagon abruptly canceled a deployment to the country that was underway.

Earlier this month, Trump said he would pull 4,000 troops out of Germany after Chancellor Friedrich Mertz was critical of the US war on Iran.

Marco Rubio (3:13)

I don't think anyone is shocked to know that the United States and the president in particular is very disappointed at NATO right now.

Daniel Bach (3:20)

That's US. Secretary of State Marco Rubio, who lashed out at some allies ahead of a meeting with NATO foreign ministers in Sweden this morning.

Marco Rubio (3:27)

Why is NATO good for America? Because it gives us bases in the region that allow us to project power during a contingency in the Middle East or somewhere else. So when that is the key rationale for why you're in NATO, and then you have countries like Spain denying us the use of these bases, well then why are you in NATO?

Daniel Bach (3:44)

There, NATO Secretary General Mark Rutte has fielded questions on the recent shifts in policy from the US., including the new troop announcement.

Mark Rutte (3:52)

Our military commanders are working through all the details, but of course I welcome it.

But let's be clear, the trajectory we are on, which is a stronger Europe and a stronger NATO, making sure we will over time, step by step, be less reliant on one ally only, as we have been for so long, which is the United States. So that also they have the possibility and the option to pivot more towards other priorities, which are also in our interest, will continue.

Daniel Bach (4:22)

And Canada's oil-rich province of Alberta will hold a referendum in October on whether to leave Canada. But the province's premier, Danielle Smith, said it won't actually be a vote on whether to become an independent country. A ballot question will ask whether Alberta should stay in Canada or take legal steps under the Constitution to hold a binding referendum on separating.