Jack Daniel's pays the price of Trump's tariff war as American liquor gets pulled off Canadian shelves
As the trade war continues, there is growing resentment in Canada, and as Canadians rally around the flag, American-made goods are losing out. One of the most affected items due to the Canadian retaliatory measures is American liquor, particularly Jack Daniel¡¯s.
US President Donald Trump followed through with his promise of imposing tariffs on three of its largest trade partners ¨C Canada, Mexico, and China. The three countries also responded in kind, announcing tariffs on US imports.
As the trade war continues, there is growing resentment against the US in Canada, and as Canadians rally around the flag, American-made goods are losing out.
CREDIT: REUTERS
Canada pulls Jack Daniel¡¯s off shelves
Across categories, Canadians are finding locally made alternatives, and even supermarkets are encouraging people to buy Canadian products.
?Canada pulled roughly $240 million (USD) worth of American alcohol from store shelves yesterday.
¡ª Dean Blundell?? (@ItsDeanBlundell) March 5, 2025
Most US alcohol companies rent space and sell on consignment in Canadian grocery/liquor stores.
Canadian whiskey makers benefit, and make better whiskey anyway. Hands down. pic.twitter.com/uE4HFSKRTk
One of the most affected items due to the Canadian retaliatory measures to the Trump tariffs is American liquor, particularly Jack Daniel¡¯s.
CREDIT: AP
Most Canadian provinces have ordered stores to pull American liquor off their shelves. According to local media reports, on Wednesday, Canada pulled roughly $240 million worth of American alcohol from store shelves.
Worse than tariff: CEO
Reacting to the Canadian move, Lawson Whiting, the CEO of Jack Daniel¡¯s maker Brown-Forman, said that the Canadian response was "worse than a tariff" and "disproportionate".
"I mean, that's worse than a tariff, because it's literally taking your sales away, (and) completely removing our products from the shelves," Whiting said on a post-earnings call.
CREDIT: AP
Canada accounted for only 1% of the company's total sales, Whiting said, so the company can withstand the hit.
American farmers to be affected
It is not just American liquor companies that are facing the heat of the tariff war initiated by Trump. American farmers are among those who would be hit the hardest by the 25 per cent tariffs on Canadian imports.
Eighty-five per cent of the potash American farmers use in fertiliser comes from Canada, which also supplies some nitrogen fertiliser as well.
CREDIT: REUTERS
The United States imports a lot of lean beef to mix with fattier beef produced at American plants to make hamburgers, and that imported beef will get more expensive because nearly half of it comes from Canada and Mexico. That's likely to show up in grocery stores in six to eight weeks.
America exported more than $1.8 billion worth of chicken and another $8.4 billion in red meat to Mexico, Canada, and China. These tariffs could make them more expensive, and the industry fears that it could easily lead to a 10% drop in exports.
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Bobins Abraham is the Assistant News Editor at Indiatimes. He has more than twelve years of experience in TV and digital journalism. An avid student of history and geopolitics, he is a conservationist and environmentalist at heart. He writes on environment, sustainability, human-animal conflict and more.
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