Jack Daniel’s Maker: Canada Pulling US Alcohol off Shelves ‘Worse Than Tariff’/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Jack Daniel’s parent company, Brown-Forman, is criticizing Canada’s decision to remove American liquor from store shelves as retaliation for Trump’s tariffs. CEO Lawson Whiting called the move “worse than a tariff”, as it completely eliminates sales rather than just adding costs. Canadian provinces are escalating their boycott of U.S. goods, travel, and entertainment, reflecting growing consumer backlash.
Canada’s Liquor Ban Hits U.S. Brands Hard
Key Takeaways at a Glance
- Canada removes U.S. liquor brands from store shelves in response to Trump’s tariffs.
- Jack Daniel’s parent company calls move “worse than tariffs.”
- Canadian consumers increasingly boycotting U.S. products and events.
- Brown-Forman remains confident despite sales drop and trade uncertainty.
- U.S. spirits industry faces slowdown due to tariffs and consumer shifts.
Jack Daniel’s Maker: Canada Pulling US Alcohol off Shelves ‘Worse Than Tariff’
Canada Pulls U.S. Liquor Off Shelves Amid Trade Dispute
Brown-Forman, the parent company of Jack Daniel’s, is pushing back against Canada’s retaliatory trade measures, calling them more damaging than Trump’s tariffs.
CEO Lawson Whiting expressed frustration after multiple Canadian provinces pulled U.S. liquor brands from government-controlled liquor stores, part of an ongoing economic retaliation following President Donald Trump’s recent tariffs on Canada.
“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 on a post-earnings call Wednesday.
Canadians Boycott U.S. Goods and Travel
The move reflects a growing consumer backlash in Canada, where many are boycotting U.S. brands in protest.
- Liquor stores in multiple provinces have stopped selling American alcohol.
- Canadian consumers are shifting their spending to local brands.
- Many are avoiding U.S. travel, sports events, and products.
Whiting acknowledged that Canada only accounts for 1% of Brown-Forman’s total sales, meaning the company can absorb the hit.
Tariffs and Economic Fallout
Canada’s 25% tariff on U.S. alcohol imports, announced Tuesday, is part of a broader trade war sparked by Trump’s tariff policies.
Brown-Forman is also watching Mexico’s reaction closely, as the country accounts for 7% of the company’s annual sales.
“We will monitor what happens in Mexico,” Whiting said.
Spirits Industry Faces Market Challenges
Beyond trade tensions, Brown-Forman has faced headwinds in 2025, including:
- Slower demand in key markets like the U.S., Canada, and Europe.
- Increased competition from local and craft brands.
- Rising costs due to global supply chain disruptions.
To combat this, the company has undertaken cost-cutting measures, including workforce reductions.
Despite a 3% drop in net sales to $1.04 billion, missing analysts’ expectations, Brown-Forman reaffirmed its forecast for 2% to 4% sales growth in fiscal 2025.
Looking Ahead
Whiting admitted to “continued uncertainty and headwinds in the external environment”, but expressed confidence in the company’s long-term trajectory.
“We are confident in our ability to navigate these challenges,” he said.
As the trade war intensifies, Brown-Forman—and other U.S. beverage companies—will be closely watching how Canada’s boycott and potential Mexican retaliation impact the industry.
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