The parent company of Jack Daniel's, Brown-Forman, has criticized Canadian provinces' decision to remove US-made alcohol from shelves as retaliation against US tariffs imposed during the Trump administration. CEO Lawson Whiting described the move as "disproportionate," noting that it directly affects sales. Canada has responded to US tariffs with its own levies while urging consumers to opt for local beverages.
Jack Daniel's Parent Company Decries Canada's Alcohol Ban Amid Escalating Trade Tensions
Jack Daniel's Parent Company Decries Canada's Alcohol Ban Amid Escalating Trade Tensions
Brown-Forman's Lawson Whiting condemns Canadian provinces' removal of US alcohol as a more severe response than tariffs themselves, amidst ongoing trade disputes over US tariffs on Canadian goods.
Canada's liquors are facing a notable adjustment as several provinces, notably Ontario, implement a ban on US alcohol products in a direct challenge to the tariffs imposed by the previous Trump administration. Brown-Forman, the company behind the iconic Jack Daniel's, expressed its discontent, emphasizing this move is "worse than tariffs," according to CEO Lawson Whiting.
The decision to exclude US-made alcoholic beverages from store shelves was an immediate consequence following the introduction of a 25% tariff on Canadian goods by the Trump administration. The Liquor Control Board of Ontario (LCBO) responded by removing US products entirely, impacting roughly $1 billion in sales annually. Premier Doug Ford confirmed this move, solidifying the LCBO's stance as Ontario's exclusive wholesaler, meaning local retailers and eateries cannot replenish their stock of American spirits.
Whiting noted the ban's disproportionate impact on his company, stating, "It's literally taking your sales away," even as he acknowledged that Canada represents only 1% of Brown-Forman's overall revenue. The company can presumably absorb this setback but remains cautious about potential ripple effects in the larger North American market.
In the midst of these rising tensions, Prime Minister Justin Trudeau has critiqued the US tariffs, labeling them as "very dumb," while suggesting that such measures could unintentionally lead to economic destabilization in Canada. Trudeau has pointed to remarks made by Trump concerning Canadian annexation—a notion that has raised eyebrows within Canadian political circles.
In retaliation, Canada is also imposing its own 25% tariffs on numerous American goods, including beer and wine, creating a tit-for-tat dynamic between the two countries. As the situation develops, Canadian consumers are encouraged to support local products, with some already adjusting their purchasing behaviors in the face of the tariffs.
As dynamics continue to evolve in this contentious trade landscape, Brown-Forman is closely monitoring developments in Mexico, given that it accounts for 7% of their revenue. The ongoing discourse around tariffs and economic relations raises critical questions regarding the future of cross-border commerce in North America.
