The CEO of Brown-Forman, the maker of Jack Daniel's, unequivocally criticized Canadian provinces for their decision to remove US alcohol from stores, calling it an extreme response to US tariffs imposed by the Trump administration.
Jack Daniel's CEO Labels Canada’s US Alcohol Ban "Worse Than Tariffs"
Jack Daniel's CEO Labels Canada’s US Alcohol Ban "Worse Than Tariffs"
Canadian provinces retaliate against US tariffs, pulling American alcohol from shelves.
The Liquor Control Board of Ontario (LCBO), one of the largest buyers of alcohol globally, initiated a complete withdrawal of US-made drinks this week, highlighting growing tensions in trade relationships. Lawson Whiting, the CEO of Brown-Forman, labeled the Canadian response "disproportionate," stating that it directly removed their products from sale, making it "worse than a tariff."
In retaliation to the 25% US tariffs on Canadian goods, Canada has reciprocated with similar levies on US imports, including a wide array of alcoholic beverages. Ontario Premier Doug Ford confirmed the sweeping action that will result in lost sales, indicating that the LCBO sells nearly $1 billion worth of US alcohol annually.
Despite the setback, Whiting noted that Canada represents only 1% of Brown-Forman's total sales, suggesting the company can absorb the impact. Meanwhile, the LCBO has encouraged consumers to opt for Canadian products, a trend some Canadians are already gravitating towards as a reaction to the tariffs.
The issue drew attention from Canadian Prime Minister Justin Trudeau, who condemned the US tariffs as an unwise decision, alluding to Trump's provocative comments about annexing Canada. Amidst these tensions, the dynamics of US and Canadian trade agreements continue to evolve as both sides grapple with the implications of their respective policies. Whiting also mentioned that Brown-Forman would be monitoring the situation in Mexico, where the company generates 7% of its sales.
In the ongoing conflict regarding tariffs and alcohol imports, the economic repercussions for both nations remain significant, amid concerns over each country’s economic stability and trade relationships.
In retaliation to the 25% US tariffs on Canadian goods, Canada has reciprocated with similar levies on US imports, including a wide array of alcoholic beverages. Ontario Premier Doug Ford confirmed the sweeping action that will result in lost sales, indicating that the LCBO sells nearly $1 billion worth of US alcohol annually.
Despite the setback, Whiting noted that Canada represents only 1% of Brown-Forman's total sales, suggesting the company can absorb the impact. Meanwhile, the LCBO has encouraged consumers to opt for Canadian products, a trend some Canadians are already gravitating towards as a reaction to the tariffs.
The issue drew attention from Canadian Prime Minister Justin Trudeau, who condemned the US tariffs as an unwise decision, alluding to Trump's provocative comments about annexing Canada. Amidst these tensions, the dynamics of US and Canadian trade agreements continue to evolve as both sides grapple with the implications of their respective policies. Whiting also mentioned that Brown-Forman would be monitoring the situation in Mexico, where the company generates 7% of its sales.
In the ongoing conflict regarding tariffs and alcohol imports, the economic repercussions for both nations remain significant, amid concerns over each country’s economic stability and trade relationships.
