The CEO of Brown-Forman, maker of Jack Daniel's, has condemned Canada’s decision to eliminate US alcohol from shelves as a reaction to US tariffs, describing the response as disproportionate and damaging to sales.
Jack Daniel's Urges Canada to Reverse Ban on US Alcohol Amid Trade Tensions
Jack Daniel's Urges Canada to Reverse Ban on US Alcohol Amid Trade Tensions
Brown-Forman CEO criticizes Canada’s decision to pull US-made alcohol in retaliation to US tariffs, calling it a harsher blow than the tariffs themselves.
In a bold response to US tariffs imposed by the Trump administration, several Canadian provinces, including the populous Ontario, have removed US-made alcohol from their shelves. Lawson Whiting, the CEO of Brown-Forman, which produces Jack Daniel's, has characterized this action as "worse than tariffs,” stating that it completely cuts off US products from consumers.
The Liquor Control Board of Ontario (LCBO), which ranks among the world’s largest alcohol buyers, began this initiative on Tuesday to express their discontent with the 25% levies placed on Canadian goods by the US. Whiting emphasized the severity of the Canadian response, arguing that it directly affects sales and availability at a level that tariffs do not.
In retaliation, Canadian provinces, including Nova Scotia and Ontario, have implemented their own 25% tariffs on US products, which encompassed not just spirits, but also beer and wine. Premier Doug Ford underscored the high stakes, noting that the LCBO historically sells nearly $1 billion worth of US alcohol each year, but vowed that as of now, those products are fully off the shelves.
Despite this setback, Whiting maintained a pragmatic outlook, noting that Canada's market only constitutes about 1% of the company's total sales, indicating that Brown-Forman can endure the financial strain. The LCBO also encouraged Canadians to support locally-made products, a movement which some have embraced amid the ongoing trade dispute.
Canadian Prime Minister Justin Trudeau has slammed the US tariffs, labeling them as a "very dumb thing to do" and suggesting that such moves are harmful to the Canadian economy. Accusations have also surfaced regarding US plans to diminish Canada’s economic stability, which Trudeau implies could facilitate an annexation effort by the US, an assertion echoed by Canada’s Foreign Minister.
While Trump has extended similar tariffs to Mexico, he has opted to spare car manufacturers in both Canada and Mexico temporarily. The tit-for-tat tariffs stem from longstanding concerns over issues such as drug smuggling, particularly regarding the fentanyl crisis, though both Canada and Mexico have rejected these claims as unfounded.
As the dust settles from these trade tactics, Whiting noted that he is monitoring developments in Mexico as well, which accounted for a more significant 7% of Brown-Forman's sales in 2024.
