Brown-Forman CEO Lawson Whiting condemned the actions of Canadian provinces removing U.S. alcohol as "worse than tariffs." As Canada retaliates against U.S. trade policies, the impact on market dynamics raises concerns for both American producers and local consumers.
Jack Daniel's Criticizes Canada's Ban on U.S. Alcohol Amid Tariff Retaliation
Jack Daniel's Criticizes Canada's Ban on U.S. Alcohol Amid Tariff Retaliation
In response to rising U.S. tariffs, Canadian provinces like Ontario have removed U.S.-made alcohol from shelves, prompting a sharp critique from Brown-Forman's CEO.
Jack Daniel's maker, Brown-Forman, expressed strong disapproval of Canadian provinces, including Ontario, removing U.S.-made alcoholic beverages from store shelves in response to increased U.S. tariffs. The Canadian government's latest actions, described as "disproportionate" by CEO Lawson Whiting, mark a provocative retaliation against the Trump administration's 25% tariffs on Canadian goods.
The Liquor Control Board of Ontario (LCBO), recognized as one of the world’s largest purchasers of alcohol, declared earlier this week that it would also cease to stock U.S. liquor due to these tariffs. Ontario Premier Doug Ford highlighted that the LCBO's removal of U.S. products could significantly affect nearly $1 billion in sales annually derived from American alcohol.
Ford emphasized that as of the latest announcement, all U.S. alcoholic beverages have been removed from Ontario shelves, reinforcing the province's commitment to support local products. In light of this situation, the LCBO has advised consumers to opt for Canadian-made goods. A noticeable trend among Canadians has shown a pivot towards domestic breweries and distilleries, partly in response to the recently imposed tariffs.
Despite these challenges, Whiting mentioned that Canada represents only 1% of Brown-Forman's total sales, allowing the company to absorb the temporary setback. As tensions escalate, Canada's Prime Minister Justin Trudeau voiced criticism of U.S. tariffs, labeling them as "very dumb" and insinuating ulterior motives that could jeopardize Canada's economic stability.
In addition to the tariffs on Canadian goods, the U.S. has also implemented similar levies on Mexico. However, Trump has indicated that car manufacturers in both Canada and Mexico will not be subjected to these taxes at this time. As Brown-Forman prepares to navigate this evolving trade environment, the CEO is also monitoring the situation in Mexico, where the company generates 7% of its sales.
