ONTARIO - Canadian provinces pulling US alcohol off store shelves in response to Trump trade policy is "worse than tariffs", the boss of Jack Daniel's maker Brown-Forman has said.
Several Canadian provinces, including Ontario, which is by far the most populated, took action this week in retaliation for US tariffs on Canadian goods. The Liquor Control Board of Ontario (LCBO), one of the largest buyers of alcohol in the world, removed US-made alcoholic drinks from its shelves.
Brown-Forman boss Lawson Whiting said the Canadian response was "disproportionate" to the 25% levies on Canadian goods imposed by the Trump administration. "I mean, that's worse than a tariff, because it's literally taking your sales away, completely removing our products from the shelves," Mr Whiting said. In response to the tariffs, Canada has retaliated with 25% levies on goods imported from the US, including beer, spirits, and wine. Some provinces also took action themselves, including Ontario and Nova Scotia. Ontario Premier Doug Ford said the LCBO sells nearly $1bn of US alcohol per year. "As of today, every single one of these products is off the shelves," Mr Ford said.
The LCBO is the exclusive wholesaler in Ontario, which means other retailers, bars and restaurants in the province will no longer be able to restock US products, Mr Ford said. Nevertheless, Mr Whiting said Canada makes up only 1% of Brown-Forman's total sales, so the firm can withstand the hit. Canadians are being advised by the LCBO to buy products made in Canada. Some Canadians have been turning to local goods anyway in response to the Trump tariffs. Canada's prime minister, Justin Trudeau, criticised the US tariffs on Tuesday, saying imposing them was "a very dumb thing to do".He also accused the US president of planning "a total collapse of the Canadian economy because that will make it easier to annex us". Trump has made a number of remarks about making Canada the 51st state of his country, which Canada's Foreign Minister Mélanie Joly has said she takes "very seriously". Washington has also placed 25% tariffs on Mexico, although Trump has said he will temporarily spare carmakers in both Canada and Mexico from the taxes. Mr Whiting said Brown-Forman is also going to see what happens in Mexico, which accounted for 7% of its sales in 2024.
