The tensions have been spiked by Canada boycotting US liquor with Jack Daniel’s CEO Lawson Whiting calling it ’worse than a tariff’. As reported by CNN, Canadian stores have taken American liquor off the shelves in response to tariffs imposed by the Trump administration. Whiting said that Canada’s response was over the top for a country that imports the product as taxes affect prices but a complete boycott means no sales at all. However, he is not too worried about Jack Daniel’s, which gets only 1% of its sales from Canada. The main threat is Mexico, which is also subjected to US tariffs and is 7% of the company’s revenue. Besides liquor, the Canadians are said to be avoiding US-made goods, sports events, and even travelling there, which will increase the economic effects. The industry has been further strained by Canada’s implementation of a 25% retaliatory tariff on American wine, spirits, and beer. The boycott and tariffs are particularly problematic for Brown-Forman, Jack Daniel’s parent company, which has seen slackening demand in the U.S., Canada, and Europe. Nonetheless, the company’s net sales declined by 3% year on year to $1.04 billion, after missing analysts’ expectations of $1.07 billion thanks to strong sales in emerging markets like Mexico and Poland.
Canada Boycotting US Liquor ‘Worse Than Tariff,’ Says Jack Daniel's CEO
