The head of Jack Daniel’s says Canadian provinces pulling its American Whiskey from store shelves in retaliation against US trade policies, is”disproportionate” and worse than the 25% retaliatory tariffs.
Provinces like Ontario, Canada’s most populous, acted this week in response to tariffs imposed on Canadian goods by the US government. On Tuesday, the Liquor Control Board of Ontario (LCBO), one of the largest alcohol purchasers globally, removed US-made drinks from its stores.
Brown-Forman CEO Lawson Whiting described the Canadian measures as an overreaction to the 25% tariffs introduced by the Trump administration on Canadian products.
“This is worse than a tariff. It’s completely cutting off sales by taking our products off the shelves,” said Whiting.
Canada has responded to the US tariffs by placing its own 25% tax on a range of American imports, including beer, wine, and spirits. Individual provinces have also taken action, with Ontario and Nova Scotia among them.
Ontario Premier Doug Ford announced that the LCBO, which sells nearly $1 billion worth of US alcohol annually, has removed all American-made products from its shelves. “Starting today, these products are no longer available,” Ford stated.
Canada Only 1% of Jack Daniel’s Sales
Since the LCBO is the exclusive distributor in Ontario, bars, restaurants, and other retailers in the province cannot replenish their supplies of US alcohol, he added.
However, Whiting downplayed the broader impact on Jack Daniel’s, noting that Canada represents only 1% of the company’s total sales.
The LCBO has encouraged Canadians to support local producers by buying Canadian-made alcohol. Many Canadians, frustrated by the US tariffs, have already turned to domestic options.
Prime Minister Justin Trudeau also criticized the US tariffs, calling them “a very poor decision.” He accused the Trump administration of attempting to destabilize Canada’s economy, suggesting it could be a strategy to make annexation easier.
Trump has previously joked about making Canada the 51st state, a comment Canada’s Foreign Minister Mélanie Joly said she takes seriously.
In addition to targeting Canada, the US has imposed 25% tariffs on Mexico. However, Trump has temporarily spared Canadian and Mexican automakers from these taxes. He has also accused both countries of failing to address the flow of fentanyl into the US, an allegation both nations deny.
Whiting indicated that Brown-Forman is also monitoring the situation in Mexico, which accounted for 7% of the company’s 2024 sales.
