Several Canadian provinces, including Ontario, have removed US-made alcoholic beverages from store shelves in response to the Trump administration’s 25% tariffs on Canadian goods.
The Liquor Control Board of Ontario (LCBO), one of the world’s largest alcohol buyers, took US products off its shelves on Tuesday, a move that has drawn sharp criticism from Jack Daniel’s maker Brown-Forman.
Lawson Whiting, CEO of Brown-Forman, described Canada’s actions as “worse than tariffs,” arguing that removing products from shelves entirely eliminates sales. “That’s worse than a tariff because it’s literally taking your sales away, completely removing our products from the shelves,” Whiting said.
However, he noted that Canada accounts for only 1% of Brown-Forman’s total sales, minimizing the financial impact on the company.
Ontario Premier Defends Decision to Pull US Alcohol
Ontario Premier Doug Ford announced that the LCBO, which sells nearly $1 billion worth of US alcohol annually, has removed all US products from its shelves. As the exclusive wholesaler in Ontario, the LCBO’s decision affects other retailers, bars, and restaurants in the province, as they will no longer be able to restock US-made beverages.
The LCBO is now advising Canadians to purchase locally produced alcohol, a trend that has gained momentum in response to the Trump administration’s tariffs. Many Canadians have already shifted to domestic products as a form of protest against US trade policies.
Trudeau Criticizes US Tariffs and Trump’s Remarks
Canadian Prime Minister Justin Trudeau condemned the US tariffs, calling them “a very dumb thing to do.” He also accused President Trump of aiming for “a total collapse of the Canadian economy to make it easier to annex us.” Trump has repeatedly made remarks about making Canada the 51st US state, a notion that Canadian Foreign Minister Mélanie Joly has said she takes “very seriously.”
Why It Matters
The Trump administration has also imposed 25% tariffs on Mexican goods, though it has temporarily exempted carmakers in both Canada and Mexico. Trump has accused both countries of failing to curb the flow of fentanyl into the US, a claim rejected by Canadian and Mexican officials.
While Canada represents a small portion of Brown-Forman’s sales, Mexico accounts for 7% of its 2024 revenue. Whiting stated that the company is closely monitoring the situation in Mexico to assess the potential impact of trade tensions on its operations.
