- On Thursday, President Donald Trump announced he is suspending tariffs on Mexico for anything that falls under the USMCA agreement.
- In response, the Liquor Control Board of Ontario (LCBO), one of the largest buyers of alcohol in the world, has removed U.S.-made alcoholic drinks from its shelves in response to Tuesday’s tariff.
- Lawson Whiting, CEO of Brown-Forman, the company that makes Jack Daniel’s, expressed concern over the removal of their products from Canadian shelves.
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Thursday morning, President Donald Trump posted on social media he has made a deal with Mexican President Claudia Sheinbaum.
“I have agreed that Mexico will not be required to pay Tariffs on anything that falls under the USMCA Agreement,” Trump said. “This Agreement is until April 2nd.”
He said he did this as an accommodation, and out of respect, for Sheinbaum.
How is Canada responding to the new tariffs?
The situation in Canada is very different. Signs are appearing in Canadian stores as American imports are being removed from the shelves.
In response to the tariff implementation on Tuesday, March 4, the Liquor Control Board of Ontario (LCBO), one of the largest buyers of alcohol in the world, has removed U.S.-made alcoholic drinks from its shelves. Ontario will exclude American companies from $30 billion worth of procurement contracts, cancel a $100 million Starlink deal, and eliminate U.S. booze.
On Tuesday, Trump imposed tariffs of 25% on Canadian goods and a 10% levy on energy. The federal government has responded with a suite of retaliatory tariffs on U.S. goods. The LCBO, under direction from Ontario Premier Doug Ford, will stop buying and selling American alcohol immediately.
“We have to make sure we diversify and make sure that the provinces, municipalities, and the federal government buy Ontario and, secondly, buy Canadian if we can’t make it here in Ontario,” Ford said.
Ford said the LCBO sells nearly $1 billion of U.S. alcohol per year. “As of today, every single one of these products is off the shelves,” Ford said.
How will the change impact American goods?
Ontario is uniquely positioned to quickly make U.S. alcohol scarce. The LCBO is the sole purchaser for all American alcohol across the province and imports $965 million worth of booze annually, with more than 3,600 American products from 36 states on its shelves.
In 2024, the United States exported to Canada over $300 million worth of spirits, wine worth $422 million and beer worth $41 million. In the same period, the United States imported from Canada a total of $771 million worth of spirits, beer, and wine.
“I mean, that’s worse than a tariff, because it’s literally taking your sales away, completely removing our products from the shelves,” Lawson Whiting, CEO of Brown-Forman, the company that makes Jack Daniel’s, said.
However, Whiting said Canada makes up only 1% of Brown-Forman’s total sales, so the firm can withstand the hit.
