Provinces in Canada have declared “war” on US-made alcoholic beverages, including whiskeyJack Daniels, in retaliation for tariffs imposed by the Trump administration.

The chief executive of Brown-Forman, the company behind Jack Daniel’s, called the move “disproportionate” and said the removal of products is worse than imposing tariffs as it leads to an immediate loss of sales.

“This is not just a tariff. It’s a decision that eliminates our sales from the market,” Lawson Whiting said on a conference call with investors, expressing his displeasure with Canada’s reaction to the new 25% tariffs that went into effect this week, CNN reports.

Boycotting US beverages

Nationwide, provinces across Canada have withdrawn US whiskies, beers and wines from stores. The Liquor Control Board of Ontario (LCBO) said it is encouraging consumers to choose Canadian products, while US beverages will remain off the market until further government order, according to a report.

With an eye on Mexico

However, Brown-Forman downplayed the impact of the decision, as its sales in Canada account for just 1% of its total turnover. Whiting noted that the company’s attention now turns to Mexico, where the same tariffs were imposed, as 7% of its sales are there.

Warnings from US industry

The imposition of tariffs has also galvanized the commercial sector in the US. The Distilled Spirits Producers Association (DISCUS) issued a statement denouncing that the tariffs on Mexico and Canada will severely hurt US businesses and workers in the industry.

“US wine and distilled beverage companies have benefited from fair and reciprocal trade. These new tariffs threaten our industry’s entire supply chain.”

Brown-Forman is at a difficult time

The tariffs add to the challenges already facing Brown-Forman, as there is a drop in demand in the spirits sector. In January, the company made 700 layoffs and closed a barrel factory in Kentucky, where it manufactured wooden barrels for aging whiskey and bourbon.