Jack Daniel’s parent company, Brown-Forman, called the ban “worse than a tariff” as it directly removes products from the market|Douglas Muth|CC BY-SA 2.0
Canada is responding to President Donald Trump’s 25% tariffs by removing American liquor brands from store shelves.
Ontario, British Columbia, and Nova Scotia have ordered state-run liquor stores to stop selling US alcohol, urging consumers to shift towards domestic alternatives and strengthening a growing movement to buy local.
According to a government-owned alcohol retailer in Ontario, American liquor generated up to 965 million Canadian dollars in annual sales, ~14% of the retailer’s annual revenue of 7 billion dollars.
The move is part of Canada’s broader retaliation, which includes tariffs on $155 billion worth of American goods.
Lawson Whiting, the CEO of Brown-Forman, which owns Jack Daniel, called the ban “worse than a tariff” as it directly removes products from the market.
While Canadian sales account for only 1% of the company’s global revenue, losing this market is still a significant blow.
US retailers fear price hikes and job losses. Trade experts warn these tensions could harm both economies.
Meanwhile, President Trump has suspended tariffs on some imports from Canada and Mexico that fall under the USMCA trade agreement till April 2. However, he plans to impose “reciprocal tariffs” on foreign nations taxing US goods.
Even with this exemption, about 50% of Mexican imports and over 60% of Canadian goods are subjected to tariffs. China, which is not included in the exemptions, has vowed to resist US trade measures.