Whiskey brands brace for global backlash amid trade tensions
The Japanese owner of whiskey brands Jim Beam and Maker's Mark anticipates that some global consumers may boycott its American brands. This expectation is due to recent actions by U.S. President Donald Trump, who has introduced tariffs on foreign products.
On Saturday, Trump signed an order imposing a 25 percent tariff on Canadian goods and a 10 percent tariff on oil and gas. Canada's response came from Prime Minister Justin Trudeau, who announced a retaliatory package on Saturday night. The package will impose tariffs on U.S. goods worth $30 billion starting Tuesday and will increase to $125 billion within 21 days.
In light of these developments, Canadian provinces have begun boycotting American alcohol. Canadian alcohol producers have welcomed the decision by several provinces to remove American beverages from local liquor stores.
Global boycott of American alcohol?
The Japanese owner of whiskey brands Jim Beam and Maker's Mark expects that some global consumers will boycott its American brands in response to Donald Trump's actions.
The CEO of the beverage giant Suntory Holdings, Takeshi Niinami, believes that its American brands will be "less accepted" due to the threat of tariffs and the "emotion" of consumers in major markets, including Europe.
"Our plan is less export from the US to other countries like [in] Europe, Mexico and Canada. We have to be more focused on the US to sell American whiskey."
Did Trump start a trade war?
Over the weekend, Trump issued a decree introducing 25 percent tariffs on goods from Canada and Mexico, along with additional 10 percent tariffs on goods from China. He then stated he would "absolutely" implement trade restrictions on Europe.
However, on Monday, he announced on the Truth Social platform that the United States would suspend the 25 percent tariffs on imports from Mexico for a month.
The same decision was made regarding tariffs on Canadian goods. After a conversation with Trump, Canadian Prime Minister Justin Trudeau stated that "proposed tariffs will be paused for at least 30 days while we work together."
