In brief
The CEO of Brown-Forman argues that this move is tougher than tariffs, impacting sales and access to U.S. spirits.
In a heated reaction to recent trade tensions, Jack Daniel's parent company, Brown-Forman, slammed several Canadian provinces for pulling U.S.-made alcohol from their shelves. Ontario, the most populated province, has led the charge by banning these products in retaliation to U.S. tariffs on Canadian goods, which include a hefty 25% levy.Brown-Forman's CEO, Lawson Whiting, declared that Canada’s approach was “worse than tariffs” since it completely wipes U.S. products off the market. "That’s literally taking your sales away," he added. This decision follows the Ontario Premier Doug Ford’s statement that the Liquor Control Board of Ontario (LCBO) sells nearly $1 billion of U.S. alcohol yearly.Despite this setback, Whiting noted that Canada contributes only about 1% to Brown-Forman's total sales, implying the company can endure the loss. Meanwhile, the LCBO is urging Canadians to purchase local beverages, and many are already shifting preferences due to the ongoing trade row. Canadian Prime Minister Justin Trudeau has voiced his disapproval of the U.S. tariffs, calling them a "very dumb thing to do," and he criticized U.S. President Trump's comments about possibly merging Canada into the U.S. as dangerous. As trade battles escalate, the impact on both countries' economies continues to unfold, leave consumers in a bind for choices.
