A trade dispute between Canada and the US has intensified, prompting several Canadian provinces to remove American alcohol from store shelves in retaliation for the Trump administration’s 25% tariffs on Canadian goods. Lawson Whiting, CEO of Brown-Forman, criticized this move as “worse than tariffs,” stating it eliminates sales entirely. Ontario’s Liquor Control Board (LCBO) has banned US drinks, affecting nearly $1 billion in annual sales. In response to US tariffs, Canada implemented its own tariffs on American goods. Canadian leaders, including Prime Minister Justin Trudeau, have condemned the US actions, with rising nationalist sentiment among consumers favoring local products.
A trade conflict between Canada and the United States has intensified, leading several Canadian provinces to remove American-made alcoholic beverages from their store inventories. This response comes as a direct reaction to the Trump administration’s 25% tariffs imposed on Canadian products. Lawson Whiting, CEO of Brown-Forman, the parent company of Jack Daniel’s, has criticized the Canadian response, labeling it as “worse than tariffs” and “disproportionate” to the tariffs enforced by the US.
“This is worse than a tariff, as it literally eliminates our sales, entirely taking our products off the shelves,” Whiting remarked.
The Liquor Control Board of Ontario (LCBO), recognized as one of the largest alcohol purchasers globally, ceased the sale of US-made beverages on Tuesday. Ontario Premier Doug Ford disclosed that the LCBO generates nearly $1 billion in sales from US alcohol each year, stressing that all of these items are currently unavailable for purchase. With the LCBO holding exclusive wholesaler rights in Ontario, other retailers, bars, and restaurants in the province cannot replenish US goods.
In retaliation to the US tariffs, Canada has enacted its own 25% tariffs on American products, including beer, spirits, and wine. Certain provinces, like Ontario and Nova Scotia, have implemented further actions. These trade tensions have incited a surge of nationalism among Canadians, prompting some to choose local products over items produced in the US.
Whiting acknowledged that Canada contributes only 1% to the company’s overall sales, making the trade conflict manageable. However, the company is also keeping an eye on developments in Mexico, which represented 7% of its sales in 2024 and has similarly been impacted by US tariffs.
The trade dispute has elicited strong responses from Canadian officials. Prime Minister Justin Trudeau condemned the US tariffs as “a very dumb thing to do.” He also accused President Trump of attempting to destabilize the Canadian economy. Canada’s Foreign Minister Melanie Joly has voiced her concerns regarding Trump’s comments about making Canada the 51st state of the US, taking these statements “very seriously”.