OTTAWA: Canada has pulled U.S.-made spirits off its shelves in response to tariffs imposed by President Donald Trump. Brown-Forman, the company behind Jack Daniel’s, has called the move “disproportionate.” CEO Lawson Whiting said removing products is worse than a tariff as it directly impacts sales.
Provinces Remove U.S. Liquor
Liquor authorities in Canada have instructed retailers to promote Canadian-made alternatives. The Liquor Control Board of Ontario confirmed U.S. spirits will remain unavailable unless directed otherwise. This decision comes after the U.S. applied a 25% tariff on Canadian imports.
Impact on Sales
Despite the ban, Canada represents only 1% of Brown-Forman’s total sales. The company expects to withstand the financial hit. Whiting is also monitoring Mexico’s reaction, as tariffs impact a country that makes up 7% of the company’s revenue.
Industry Concerns Grow
The Distilled Spirits Council of the United States (DISCUS) has voiced strong opposition to the tariffs. The group highlighted that U.S. wines and spirits have long benefited from free trade with Canada and Mexico. It warned that these tariffs would negatively impact American businesses.
Economic Struggles Continue
Brown-Forman has already been dealing with declining sales. Earlier this year, it laid off 700 employees and shut down a barrel-making facility. The company initially saw strong demand during the pandemic, but whiskey sales have since slowed significantly.
Stock Market Reaction
Despite the controversy, Brown-Forman’s stock surged 10% after confirming that its financial outlook had already accounted for tariffs. The company remains focused on managing trade challenges and shifting market conditions.
