Jack Daniel’s manufacturer says that the Canadian boycott “is worse than a tariff”

The decision of several Regional Governments of Canada to withdraw different American products from supermarkets, in particular alcoholic beverages, in response to the 25% rate imposed by Donald Trump to imports from his northern neighbor, “is worse than a tariff,” according to Lawson Whiting, CEO Brown-Forman’s, Jack’s manufacturing company Daniel’s.

Last February, after Imposition announcement From a 25% tariff to Canadian exports to the US, which finally entered into force on Tuesday, the first minister of Ontario, Doug Ford, announced the withdrawal of alcoholic beverages from the US of the US.authorized wholesaler to sell alcohol in the Canadian province.

“That is worse than a tariff because it is literally eliminating your sales completely withdrawing our shelving products, it is a very disproportionate response to a 25%tariff,” said the executive during a conference with analysts after the presentation of the accounts of the third quarter of the fiscal year of the company.

In this sense, Whiting said that the company will continue to fight to achieve the reduction or elimination of reciprocal tariffs because it is the best for the whole sector, although it pointed out that The Canadian market It represents only about 1% of Brown-Forman’s sales, stressing that, although it is “frustrating”, the company “can support it.”

“We will see how it develops (…) and we will have to do what happens to Mexico,” he added.

In its third fiscal quarter, which ran between November 2024 and January 2025, US distillery achieved a net profit of 270 million dollars (252 million euros), 6% less than a year earlier, while its sales fell 3% year -on -year, up to 1,035 million dollars (967 million euros).

In this way, in the first nine months of its year, the company saw its profits, up to 723 million dollars (675 million euros), with net sales of 3,081 million dollars (2,878 million euros), fell by 5%), 4% less.

In this regard, the company indicated that, in the first nine months of its exercise, Wiski’s sales remained stable, while the net sales of tequila decreased by 15% weighted by the Competitive environment in the United States and challenging macroeconomic conditions in Mexico.

Facing the rest of the year, the company He confirmed his forecast From an organic growth of net sales from 2% to 4%, although it warned that the operational environment is increasingly volatile due to geopolitical uncertainties and global macroeconomic conditions.