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Jack Daniel’s manufacturer, Brown-Forman’s CEO, said that Canadian retailers decided to remove alcohol from the shelf to protest Donald Trump’s trade policy, which is harmful to the company’s finances than the actual tariffs.
Mental maker Quarterly Wednesday, Lawson Whiting CEO said that it is a destructive blow to US companies to prevent buying products made in the United States in Canada or other countries.
Whiting said, “This is worse than tariffs because it literally takes the sale and removes the product from the shelf. “This is a very unbalanced response to 25% tariffs.”
Whiting says that Canada accounts for only 1%of Brown-Forman’s sales, but the company is more concerned about the potential impact of the wide range of tariffs of the European Union. The CEO said that Kentucky -based alcohol manufacturers are planning a possibility of retaliation similar to EU countries.
Morgan Stanley’s analyst Eric Serotta told investors that tariffs will make a unique challenge to Brown-Forman. He added that 55%of the mainstream manufacturers came from outside the United States, and Bourbon methods needed domestic production, so they cannot be produced internationally.
Robert Moskow, an analyst at TD Cowen, expressed concern that other US products could be in danger.
“Given the initial reactions we saw in Canada, we would not be surprised if the aggressive US trade policy went beyond whiskey (Budweiser, Hershey, Heinz) to consumer boycotts against other American brands. ”
Earlier this week, Ontario Liquor Control Committee (one of the largest importers of the US alcohol representing 3,600 products) Said in the statement “We have stopped buying all American products.” The group advises Canadians to buy products manufactured in Canada.
The tariff situation is rapidly developing.
Thursday, the White House delayed 25%of tariffs on some products in Canada and Mexico for a month due to concerns about potential economic falls. However, about 62%of products imported from Canada will continue to face tariffs because they do not comply with the US-Mexico-Canadian free trade agreement. AP has been reported.
Justin Truddo Canadian Prime Minister Monday announcement This obligation is still implemented on Friday morning in a statement that 25%of tariffs will be imposed on US imports.
