Jack Daniel’s maker says Canada pulling stock worse than tariffs

Brown-Forman’s CEO worries the response to U.S. duties by retailers could spread to Europe.

Published March 13, 2025

First published on

The CEO of Jack Daniel’s maker Brown-Forman says the decision by Canadian retailers to remove U.S. alcohol from shelves to protest President Donald Trump’s trade policies is more damaging to the company’s finances than the actual tariffs.

In the spirit maker’s quarterly earnings call on March 5, CEO Lawson Whiting said blocking consumers from buying American-made products in Canada or other countries is a crushing blow for U.S. companies.

“That’s worse than a tariff because it’s literally taking your sales away completely, removing our products on the shelves,” Whiting told investors. “That’s a very disproportionate response to a 25% tariff.”

Whiting said while Canada only accounts for 1% of Brown-Forman’s sales, the company is more concerned about the potential impact of broader tariffs in the European Union. The CEO said the Kentucky-based alcohol maker is planning for the possibility of similar retaliatory measures by EU countries.

Morgan Stanley analyst Eric Serotta said in a note to investors that tariffs would pose unique challenges for Brown-Forman, with the effects likely to linger. He added that 55% of the liquor manufacturer’s sales come from outside the U.S., and bourbon laws require domestic production so it cannot be produced internationally.

Robert Moskow, an analyst with TD Cowen, expressed concern that other U.S. products could be at risk.

“Given the early response we’ve seen in Canada, we wouldn’t be surprised if aggressive U.S. trade policy leads to consumer boycotts on other American brands beyond whiskey (Budweiser, Hershey, Heinz),” he told investors.

On March 4, the Liquor Control Board of Ontario — one of the biggest importers of American alcohol to Canada, representing 3,600 products — said in a statement it “ceased the purchase of all U.S. products.” The group is advising Canadians to purchase products manufactured in Canada.

The tariff situation is quickly evolving.

The White House again postponed the enactment of 25% tariffs imposed on some goods from Canada and Mexico until April 2 amid concerns about the potential economic fallout. But approximately 62% of products imported from Canada would continue to face tariffs because they do not comply with United States-Mexico-Canada free trade agreement, the AP reported.

Yesterday, Canada announced plans to impose 25% reciprocal tariffs against the U.S., effective Thursday. The duties would cover an additional $29.8 billion of imports from the U.S. The move counters the U.S. tariffs of 25% on steel and aluminum that took effect March 12