Trump tariffs paused again, but Jack Daniel’s is still not for sale in Canada
Kentucky bourbon makers may have gotten a reprieve from potentially crippling tariffs — but it could be only temporary.
On March 5, President Trump suspended tariffs on imports from Mexico and Canada. The move came as liquor companies in Kentucky and nationwide braced for theimpact from retaliatory maneuvers from neighboring countries after export tariffs took effect earlier this week.
But after delaying the tariffs once already last month, Trump suspended them again Thursday after just two days.
“We are hopeful that constructive dialogues continue between the U.S., Canada and Mexico that permanently brings back zero for zero tariffs for spirits trade between our three countries,” Chris Swonger, president and CEO of the Distilled Spirits Council of the U.S. said in a statement. “We want toasts, not tariffs.”
It’s unclear if Jack Daniel’s Tennessee Whiskey and Kentucky bourbon have made their way back to store shelves in Canada, though.
A viral video this week showed Canadian retailers removing Jack Daniel’s from shelves at the direction of the premiers of Ontario and Manitoba.
Brown-Forman CEO Lawson Whiting said Wednesday the actions were “more painful than tariffs” because they removed American products entirely. He called the move a “disproportionate” response to the 25% tariffs on Canadian goods imposed by the Trump administration.
The Liquor Control Board of Ontario’s web site still said Friday morning that “U.S. products are no longer available in response to the U.S. tariffs on Canadian goods,” with a link to a statement saying the move is “For the good of Ontario. For the good of Canada.”
Manitoba Liquor Mart had a similar notice that read: “We are no longer selling American liquor products.”
Trump’s suspension of the new tariffs is scheduled to expire April 2, which means that even if sales resume now, they could be facing higher costs in less than a month.
That’s right around the time that a 50% tariff could kick in on American whiskey sales to the European Union countries. Trump’s trade war during his first administration with the EU over steel and aluminum imports triggered retaliatory 25% tariffs on bourbon and American whiskey.
During President Biden’s administration, the tariffs were paused while the countries negotiated, but the deadline for a deal is the end of March.
Whiting said Tuesday there has been no word from the EU on whether that will happen.
