A trade dispute between Canada and the US has escalated, with several Canadian provinces pulling American-made alcohol from store shelves. The move is a direct response to the Trump administration’s imposition of 25% tariffs on Canadian goods. Lawson Whiting, CEO of Brown-Forman, the company behind Jack Daniel’s, has denounced the Canadian retaliation, calling it “worse than tariffs” and “disproportionate” to the US levies.
“I mean, that’s worse than a tariff, because it’s literally taking your sales away, completely removing our products from the shelves,” Whiting said.
The Liquor Control Board of Ontario (LCBO), one of the world’s largest alcohol buyers, removed US-made drinks from its shelves on Tuesday. Ontario Premier Doug Ford revealed that the LCBO sells nearly $1 billion worth of US alcohol annually, emphasising that all these products are now off the shelves. The LCBO’s exclusive wholesaler status in Ontario means that other retailers, bars, and restaurants in the province can no longer restock US products.
Canada has retaliated against the US tariffs with its own 25% levies on American goods, including beer, spirits, and wine. Some provinces, such as Ontario and Nova Scotia, have taken additional measures. The trade tensions have sparked a nationalist sentiment among Canadians, with some opting to buy local products instead of US-made goods.
Whiting, acknowledged that Canada accounts for only 1% of the company’s total sales, making the impact of the trade dispute manageable. However, the company is also monitoring developments in Mexico, which accounted for 7% of its sales in 2024 and has also been affected by US tariffs.
The trade dispute has drawn strong reactions from Canadian leaders. Prime Minister Justin Trudeau criticised the US tariffs, calling them “a very dumb thing to do.” He also accused President Trump of seeking to undermine the Canadian economy. Canada’s Foreign Minister Melanie Joly has expressed concern over Trump’s remarks about making Canada the 51st US state, taking them “very seriously”.