Jack Daniel’s Tennessee Whiskey maker Brown-Forman’s finds itself at the forefront of a trade backlash by Canada responding to Donald Trump’s tariffs.
Brown-Forman CEO Lawson Whiting in a statement yesterday said that Canadian provinces taking US liquor off store shelves was “worse than a tariff” and a “disproportionate response” to levies imposed by the Trump administration.
The comment was in response to several Canadian provinces that have already taken all US liquor off store shelves as part of retaliatory measures against Trump tariffs.
To underline its intention to counter Trump tariffs, Canada on Tuesday imposed 25% tariffs on all goods imported from the US, including spirits, wine and beer.
Brown-Forman has already suffered reduced home market demand this year, set against sales lifts in emerging markets such as Mexico and Poland. With Trump still bandying on off threats of various levels of tariffs on Mexico and Europe emerging markets for the whiskey brand could dry up. The company has already undertaken significant cost-cutting measures, including laying off workers. Some analysts have said this is in response to a more challenging environment both for the company and the broader spirits industry. Trump tariffs already in place, and wider market uncertainty around what appetite Trump has to continue or back down, and ease trade tensions will not bolster confidence in Brown-Forman.
