The ongoing trade dispute between the U.S. and Canada escalated this week as several provinces, led by Ontario, began eliminating American-made alcohol from stores in retaliation for U.S. tariffs. Brown-Forman, the company behind Jack Daniel's, has labeled this move as "worse than tariffs," adding heat to the burgeoning trade battle.
Canada's Alcohol Retailers Turn on U.S. Brands Amid Trade Tensions
Canada's Alcohol Retailers Turn on U.S. Brands Amid Trade Tensions
In a dramatic response to U.S. tariffs, Canadian provinces remove American alcoholic beverages from retail shelves, stirring conflict.
Canadian provinces like Ontario have decided to withdraw U.S.-made alcoholic drinks from store inventories following the imposition of 25% tariffs on Canadian goods by the Trump administration. Lawson Whiting, CEO of Brown-Forman, criticized this response as "disproportionate," stating, "That's worse than a tariff because it's literally taking your sales away." The Liquor Control Board of Ontario (LCBO) confirmed the removal of U.S. products, emphasizing that their exclusive wholesaling status means that bars and restaurants across Ontario cannot restock these items either.
Premier Doug Ford disclosed that the LCBO generates nearly $1 billion in sales from U.S. alcohol annually, underscoring the financial implications of this withdrawal. Despite the disruption, Whiting noted that Canada contributes only about 1% to Brown-Forman's overall sales, indicating the company can bear the loss. The LCBO is now encouraging consumers to explore Canadian-made products, which some Canadians have already pivoted to in response to the tariffs.
In related developments, Canadian Prime Minister Justin Trudeau openly condemned the U.S. tariffs, deeming them "a very dumb thing to do" and alleging that such actions threaten the Canadian economy's stability. Trump's past comments regarding Canada potentially becoming the 51st U.S. state have also stirred tensions, with Foreign Minister Mélanie Joly asserting the seriousness of these remarks.
As the trade dispute unfolds, Brown-Forman is closely monitoring developments in Mexico, which accounted for 7% of their sales in 2024, further complicating the corporate landscape amidst escalating tariffs.
Premier Doug Ford disclosed that the LCBO generates nearly $1 billion in sales from U.S. alcohol annually, underscoring the financial implications of this withdrawal. Despite the disruption, Whiting noted that Canada contributes only about 1% to Brown-Forman's overall sales, indicating the company can bear the loss. The LCBO is now encouraging consumers to explore Canadian-made products, which some Canadians have already pivoted to in response to the tariffs.
In related developments, Canadian Prime Minister Justin Trudeau openly condemned the U.S. tariffs, deeming them "a very dumb thing to do" and alleging that such actions threaten the Canadian economy's stability. Trump's past comments regarding Canada potentially becoming the 51st U.S. state have also stirred tensions, with Foreign Minister Mélanie Joly asserting the seriousness of these remarks.
As the trade dispute unfolds, Brown-Forman is closely monitoring developments in Mexico, which accounted for 7% of their sales in 2024, further complicating the corporate landscape amidst escalating tariffs.
