Jack Daniel's CEO Decries Canadian Ban on US Liquor Amid Tariff Disputes

In response to US tariffs, Canadian provinces including Ontario have banned US-made alcohol from stores, leading to strong criticism from Brown-Forman CEO Lawson Whiting, who calls the action "worse than tariffs."

Jack Daniel's manufacturer Brown-Forman's CEO, Lawson Whiting, has criticized Canadian provinces for pulling US alcohol off their store shelves in retaliation for US trade policies. The move, particularly from Ontario, has drawn serious concern as it directly impacts American producers like Jack Daniel's, removing their products from prominent markets. Whiting labeled Canada’s response as "disproportionate" to the 25% tariffs placed on Canadian goods by the Trump administration, emphasizing that losing shelf space is more damaging than financial duties.

In direct reaction to the levies, Canada has enacted its own 25% tariffs on goods imported from the US, including a wide range of alcoholic beverages. The Liquor Control Board of Ontario (LCBO), a major buyer of alcohol, took the lead by ceasing to sell US-made drinks, which represent nearly $1 billion in annual sales. Ontario Premier Doug Ford confirmed the LCBO's ban, explaining that it effectively halts sales in bars, restaurants, and other retail outlets, as they cannot replenish their inventories with US products.

Despite this upheaval, Whiting noted that the Canadian market constitutes only about 1% of Brown-Forman's overall sales, suggesting the company's resilience to the impacts of these actions. The LCBO is now encouraging shoppers to select Canadian-made products, further pushing locals toward domestic brands, a trend some had already adopted due to the ongoing tariff disputes.

In the political realm, Canada's Prime Minister Justin Trudeau has condemned the U.S. tariffs, labeling them a foolish choice and insinuating that such policies aim to undermine Canada's economy. This sentiment reflects broader tensions, including Trump's remarks about potentially annexing Canada as the 51st state, claims that Canadian officials take earnestly.

Overall, the evolving trade relationship between the two countries continues to unfold, amid growing concerns that such tariff strategies could escalate further, impacting a wide range of industries.