Tariffs lead to Jack Daniel’s Whiskey removal in Canada

Lawson Whiting, the CEO of Jack Daniel’s, expressed his frustration after some Canadian provinces pulled Jack Daniel’s whiskey from their shelves. This decision came just one day after President Donald Trump announced that he would suspend tariffs on imports between the U.S. and Canada. The move by Canadian provinces has made it harder for Jack Daniel’s to sell its products in Canada. However, Whiting made it clear that he believes the company will continue to do well despite these challenges.

Tariffs hurt sales more than expected for Whiskey makers

Whiting explained that the removal of Jack Daniel’s whiskey from Canadian shelves was much worse than a tariff. He described it as “literally taking your sales away.” While this is a major setback for the company, Whiting remained optimistic about the future. He pointed out that Canada represents only one percent of Jack Daniel’s total sales. Despite this, he stressed that the company’s overall performance wouldn’t be significantly impacted by this issue.

Tennessee farmers concerned about the tariffs on agriculture

Before the suspension of tariffs, Tennessee lawmakers expressed more concern about how the tariffs would affect local farmers. Representative William Lamberth, a Republican from Portland, shared his worries about the impact on agriculture. “I don’t think we have to worry about Jack Daniel’s being the product that’s going to go broke because of international tariffs,” Lamberth said. He added that Jack Daniel’s is still a popular brand globally, and its success will not be easily shaken by these challenges.

President Trump’s tariff suspension is a win for the spirits industry

The Distilled Spirits Council of the United States praised President Trump’s decision to suspend the tariffs. This decision was seen as a victory for the U.S., Canada, and Mexico’s spirits industries. The suspension is expected to keep the trade fair and support the growth of these industries. Chris Swonger, the President and CEO of the council, expressed hope that the discussions between the U.S., Canada, and Mexico would continue. The goal is to permanently remove tariffs on spirits trade between the three countries.

The broader impact: Farmers, distillers and consumers feel the effect

Swonger also highlighted that the impact of tariffs goes beyond just the liquor companies. He explained that tariffs affect the entire supply chain. “It all starts with grain,” he said, referring to how the grain used in whiskey production comes from farmers. The tariffs hurt farmers, distillers, bars, restaurants, and bartenders. Swonger also emphasized the importance of Canadian consumers, who love Tennessee whiskey. “Don’t forget the Canadian consumers who love Tennessee whiskey,” he reminded.