A growing trade dispute between the US and Canada has escalated as Canadian provinces pull American-made alcohol from store shelves in response to tariffs imposed by President Donald Trump.
The move has drawn sharp criticism from Jack Daniel’s parent company, Brown-Forman, which called the action more damaging than tariffs themselves.
Several provinces, including Ontario and Nova Scotia, have taken measures to stop selling US alcohol. Ontario, home to the country’s largest alcohol retailer, the Liquor Control Board of Ontario (LCBO), announced on Tuesday that all American-made alcoholic beverages would be removed. Premier Doug Ford stated that Ontario previously imported nearly $1 billion worth of US alcohol each year but would no longer allow retailers, bars, or restaurants to restock these products.
The Canadian response comes after Trump imposed 25% tariffs on Canadian goods. In retaliation, Canada placed its own 25% levies on US beer, spirits, and wine. While the tariffs had already strained trade relations, Ontario’s decision to remove American alcohol entirely has intensified tensions.
Brown-Forman CEO Lawson Whiting expressed frustration, saying the outright removal of products is far worse than a tariff because it eliminates sales completely. However, he noted that Canada accounts for only 1% of the company’s total sales, so the impact on the business will be limited.
Meanwhile, Canadian consumers are being encouraged to buy locally made alternatives. Many have already shifted toward domestic products, further reducing demand for US brands.
Prime Minister Justin Trudeau condemned the US tariffs, calling them a reckless decision that could harm both economies. He went even further, accusing Trump of wanting to weaken Canada’s economy to make annexation easier—a claim backed by Trump’s past remarks about making Canada the 51st state.
The trade battle is not limited to Canada. Washington has also placed 25% tariffs on Mexico, though Trump has temporarily exempted car manufacturers from the tax. Brown-Forman, which sees 7% of its sales come from Mexico, is also monitoring the situation there.
As tensions rise, businesses on both sides of the border are bracing for further disruptions, with American alcohol producers being the latest casualties of an escalating economic standoff.