Some countries might boycott US brands in response to the tariffs imposed by President Donald Trump. This view is held by Takeshi Niinami, the owner of Japanese alcohol conglomerate Suntory Holdings. The company owns several well-known US whiskey brands, including Jim Beam and Maker’s Mark and operates production facilities in the US.
In an interview with the Financial Times, Niinami explained, “We have a strategy and budget plan for 2025, as we assume the demand for US products, including US whiskey, will decline outside of the US – partly due to the tariffs and partly due to emotional factors.”
Especially affected would be exports to major markets such as Europe, Mexico and Canada. Therefore, Suntory Holdings plans to reduce exports from the US and focus more on the domestic US market.
Niinami expressed particular concern over the situation in Mexico, where his company operates production facilities for tequila. He emphasized that Suntory would continue to sell tequila, as both the demand for tequila and whiskey was growing.
According to his assessment, the US will ultimately refrain from imposing further tariffs: “If the tariffs affect the whole world, the US will suffer the most” he said. Trump would thus “become more realistic about the national interests of the US”.
Early in February, President Trump had imposed new tariffs on imports from Canada, Mexico and China. According to a statement from the White House, tariffs of 25% on imports from Canada and Mexico and 10% on goods from China went into effect on February 1. Trump also hinted at imposing tariffs on products from the European Union.
The impact of these measures was already visible shortly after. On February 4, the British company Diageo, the maker of tequila brand Don Julio, beer brand Guinness, whiskey brand Johnnie Walker and vodka brand Smirnoff, announced that it could not maintain its growth targets of five to seven percent due to the “uncertainty in global trade”. According to the Financial Times, almost 50% of Diageo’s total revenue comes from products made in Canada and Mexico.
Additionally, Trump’s foreign policy statements caused international irritation. He repeatedly stated that Canada and Greenland should be part of the US and expressed his intention to put the Panama Canal back under US control. These statements elicited strong reactions in Panama, Canada and Denmark.