A trade dispute between Canada and the United States has intensified, with several Canadian provinces removing American-made alcohol from store shelves. This action directly responds to the Trump administration’s 25% tariffs on Canadian goods.
Lawson Whiting, CEO of Brown-Forman, the company behind Jack Daniel’s, has strongly criticized Canada’s retaliation, calling it “worse than tariffs” and “disproportionate” to the US measures.
“That’s worse than a tariff because it completely removes our products from the shelves, taking away all our sales,” Whiting said.
Ontario Pulls US Alcohol from Shelves
The Liquor Control Board of Ontario (LCBO), one of the world’s largest alcohol buyers, removed US-made beverages from its shelves on Tuesday. Ontario’s Premier Doug Ford stated that the LCBO sells nearly $1 billion worth of American alcohol each year, all of which has now been taken off the shelves.
As the exclusive wholesaler in Ontario, the LCBO’s decision prevents other retailers, bars, and restaurants from restocking US products.
Canada has responded to the US tariffs by imposing 25% duties on American goods, including beer, wine, and spirits. Some provinces, like Ontario and Nova Scotia, have taken further steps by directly removing American alcohol from public sale. This move has fueled nationalist sentiment among Canadians, encouraging them to buy local products instead.
Impact on Jack Daniel’s and Future Concerns
Whiting acknowledged that Canada represents only 1% of Brown-Forman’s total sales, making the immediate impact manageable. However, the company is also monitoring the situation in Mexico, which accounted for 7% of its sales in 2024 and has also been affected by US tariffs.
Political Reactions and Rising Tensions
Canadian leaders have condemned the US tariffs. Prime Minister Justin Trudeau criticized the move, calling it “a very dumb thing to do” and accused President Trump of trying to undermine Canada’s economy.
Meanwhile, Canada’s Foreign Minister Melanie Joly raised concerns over Trump’s previous remarks about making Canada the 51st US state, stating that the Canadian government takes those comments “very seriously.”
The escalating trade conflict continues to strain relations between the two neighboring countries.