Jack Daniel's Blasts Canada's Alcohol Ban in Trade Retaliation Reaction

The head of Brown-Forman, the maker of Jack Daniel's, denounces Canada's decision to pull US alcohol in response to Trump's tariffs, claiming it is a harsher blow than the tariffs themselves.

Jack Daniel's parent company Brown-Forman has publicly condemned recent actions taken by several Canadian provinces to remove US-made alcohol from store shelves as retaliation for tariffs imposed by the Trump administration. Lawson Whiting, the CEO of Brown-Forman, expressed that this punitive action is "worse than tariffs," as it effectively eradicates their product's presence in the Canadian market. The Liquor Control Board of Ontario (LCBO), one of the world’s largest alcohol buyers, initiated this move by clearing out US alcoholic beverages, impacting sales dramatically.

This week, several provinces, particularly Ontario, reacted to the US administration’s implementation of a 25% tariff on Canadian goods with their own 25% levies on imports from the US, which include spirits, wine, and beer. Ontario Premier Doug Ford stated that the LCBO typically generates nearly $1 billion from the sale of US alcohol each year. He confirmed, "As of today, every single one of these products is off the shelves," noting that this exclusive wholesaler status means bars and restaurants must also cease restocking these items.

Despite the significant setback, Whiting pointed out that Canada constitutes only about 1% of Brown-Forman's overall sales, indicating that the company can weather the repercussions of the ban. Consumers in Canada are encouraged to explore locally produced goods, a trend that has already been gaining momentum in light of the US tariffs.

As the trade conflict escalates, Canadian Prime Minister Justin Trudeau criticized the US tariffs, remarking that they are "a very dumb thing to do." Trudeau suggested that this approach could jeopardize the entire Canadian economy. Additionally, US President Trump has previously made comments about integrating Canada as the 51st state, a notion that Canada's Foreign Minister Mélanie Joly has taken quite seriously.

While the tariffs have also affected Mexico—with Trump imposing a similar 25% tariff on imports from there—car manufacturers have temporarily been spared from these taxes. Trump has justified the tariffs by accusing both Canada and Mexico of not doing enough to curb fentanyl trafficking into the US, claims that both countries have rebuffed vehemently. As Brown-Forman monitors the situation, Mexico accounted for 7% of its sales in 2024, emphasizing the need for cautious navigation through ongoing trade tensions.