Jack Daniel’s CEO: Canada’s Alcohol Ban ‘Worse Than Tariff’ Amid US-Canada Trade Dispute

Washington/Toronto: A trade dispute between the United States and Canada has intensified, with several Canadian provinces removing US-made alcohol from retail shelves in retaliation for the Trump administration’s 25% tariffs on Canadian goods.

The move has sparked controversy, with Jack Daniel’s CEO Lawson Whiting denouncing the decision, calling it “worse than a tariff” and “disproportionate” compared to US trade policies.

“I mean, that’s worse than a tariff, because it’s literally taking your sales away, completely removing our products from the shelves,” Whiting, who heads Brown-Forman, the parent company of Jack Daniel’s, said.

Ontario Leads Alcohol Ban, Impacting US Brands

One of the most significant actions came from the Liquor Control Board of Ontario (LCBO), one of the world’s largest buyers of alcohol, which removed US-made drinks from shelves on Tuesday.

Ontario Premier Doug Ford revealed that the LCBO generates nearly $1 billion annually in sales of American-made alcohol, all of which is now banned. Given the LCBO’s exclusive wholesaler status, bars, restaurants, and retailers across Ontario are no longer able to restock US products.

Other provinces, including Nova Scotia, have followed suit, further escalating trade tensions between the two nations.

Canada Strikes Back: 25% Tariffs on US Goods

In response to US tariffs on Canadian imports, Canada has imposed its own 25% levies on American beer, spirits, and wine. The nationalist sentiment among Canadian consumers has also grown, with many opting to boycott US-made goods in favor of local products.

Despite the trade war, Whiting downplayed the financial impact, noting that Canada accounts for only 1% of Brown-Forman’s total sales. However, he expressed concern over developments in Mexico, which made up 7% of the company’s 2024 sales and has also been affected by US tariffs.

Trudeau: ‘A Very Dumb Thing To Do’

The Canadian government has strongly criticized the US tariffs, with Prime Minister Justin Trudeau calling them “a very dumb thing to do.” He accused President Donald Trump of attempting to undermine the Canadian economy.

Meanwhile, Canada’s Foreign Minister Melanie Joly has raised concerns over Trump’s remarks about making Canada the 51st US state, stating that her government takes the comment very seriously.

Diplomatic Fallout & Industry Concerns

With trade tensions escalating, US alcohol companies fear further retaliation from Canada, which has historically been a key market for American spirits. Industry leaders are closely monitoring the situation, as the impact on exports, consumer behavior, and diplomatic relations continues to unfold.

The coming months will be crucial in determining whether both nations will de-escalate the trade war or if further economic measures will be introduced.