US: Trump’s tariffs set to shake tequila and mezcal markets in Mexico

Published 2024년 12월 12일

Tridge summary

Exclusive data from ImportYeti reveals that tequila and mezcal leaders, Diageo and Becle, import around $1.5 billion of these spirits to the US annually, contributing to a $4.6 billion industry that has seen a 160% increase since 2019. However, these imports are now under threat due to former President Trump's promise to impose a 25% tariff on Mexican goods, a move that could potentially increase prices for consumers and negatively impact the industry, leading to job losses. Despite this, the Distilled Spirits Council plans to request an exemption from these tariffs. Meanwhile, Diageo and other major spirits companies are guarding their strategies, with Diageo stating it will collaborate with the incoming administration to address any business-related issues.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Data provided exclusively to Reuters by ImportYeti suggests that market leaders Diageo and Becle (the owner of Jose Cuervo) each send tequila and mezcal worth about US$1.5 billion to the US each year. The calculations were based on Mexican customs data. Trump has promised to put tariffs of 25% on Mexican goods in a political act to redress trade imbalances and encourage the Mexican government to act on illegal immigration to the US. The expected effect would be for the importers to be forced to increase prices for tequila and mezcal, categories that have led the cocktail boom in the US. U.S. industry imports totalled $4.6 billion in 2023, up 160% since 2019, according to the Distilled Spirits Council of the United States (DISCUS), which has warned the tariffs would cost jobs. DISCUS separately said it planned to seek an exemption to Trump’s proposed universal tariffs of 10% on all foreign goods. Diageo shipped more than 25 million litres of tequila from Mexico to the U.S. last ...

Source: Thedrinkbusiness