Jack Daniel’s Parent CEO Calls Canada’s Ban on US Alcohol an Overreaction to Tariffs

While the turbulence created by President Donald Trump’s tariffs has yet to settle in any meaningful way, at least one executive — Lawson Whiting, CEO of Brown-Forman, which produces Jack Daniel’s whisky and other liquors — is calling one aspect of Canada’s response “disproportionate.”

According to CNN, Whiting recently spoke out against a move being taken by Canada’s provincial governments, with nearly all of them removing all U.S. products from liquor store shelves. In British Columbia, however, only products originating from so-called red states are being removed from sale, as Global News reported.

“That’s worse than a tariff because it’s literally taking your sales away,” Whiting said during a March 5 earnings call, highlighting the “very disproportionate response” coming from Canadian provincial governments to the 25% tariffs applied this week.

Whiting indicated that Brown-Forman would be able to “withstand” the Canadian response, however, with the nation accounting for just 1% of the company’s total sales. The CEO also gestured toward some degree of anticipation over Mexico’s response to the tariffs, as the Mexican market makes up 7% of Brown-Forman’s sales.

Distilled Spirits Council of the United States Says Tariffs Will Cause ‘Great Harm’ to Industry

Whiting wasn’t the only voice in the alcoholic beverage business to speak up on the issue of tariffs — the Distilled Spirits Council of the United States (DISCUS), a trade group representing spirits makers, expressed displeasure over the trade policy in a March 4 statement.

“American wines and spirits have benefitted from fair and reciprocal trade with Canada and Mexico. These U.S. tariffs on Mexico and Canada will result in great harm to U.S. companies and employees throughout the wine and spirits supply chain,” the group wrote.

Tariffs Not the Only Headwind Facing Brown-Forman

Brown-Forman as a whole has been facing some significant headwinds as of late, many unrelated to the more recent tariff situation.

CNN underscored the fact that flagging demand had resulted in the layoff of 700 of the company’s workers in January and that a Kentucky cooperage — where barrels are produced to age whisky and bourbon — had also been shuttered.

Despite this confluence of factors, Brown-Forman shares ticked upward by 10% as March 5 drew to a close, with tariff implications having already been factored in regarding the company’s guidance.