Jack Daniel’s hits out at Canada pulling US alcohol

In response to recent U.S. tariffs on Canadian goods, several Canadian provinces have removed American-made alcoholic beverages from their liquor store shelves. This move has drawn sharp criticism from Lawson Whiting, CEO of Brown-Forman, the parent company of Jack Daniel’s. Whiting described the action as “worse than a tariff” and labeled it a “disproportionate response” to the U.S. levies.

The Liquor Control Board of Ontario (LCBO), a government-run alcohol retailer, announced it would immediately cease the import and sale of U.S.-made alcohol products. In a statement, the LCBO indicated that this directive would remain in effect until further notice. Similarly, provinces such as New Brunswick and Quebec have taken comparable measures, instructing retailers to remove American spirits from their inventories.

While Canada accounts for approximately 1% of Brown-Forman’s sales, the removal of products like Jack Daniel’s from Canadian shelves has tangible impacts. The company reported a 3% decrease in net sales for the quarter ending January 31, totaling $1.04 billion, compared to the same period the previous year.

This development is part of a broader trade dispute initiated by U.S. President Donald Trump’s imposition of a 25% tariff on Canadian goods. In retaliation, Canadian Prime Minister Justin Trudeau announced a corresponding 25% tariff on $155 billion worth of American imports.

The escalating trade tensions have raised concerns among industry stakeholders. In Kentucky, home to numerous bourbon distilleries, producers are bracing for potential repercussions from the trade war, particularly as Canadian markets become less accessible to American spirits.

As the situation unfolds, both U.S. and Canadian businesses are closely monitoring the impact of these trade policies on their operations and international relationships.