President Trump is is proceeding with implementing 25% tariffs on Mexico and Canada under the International Emergency Economic Powers Act (IEEPA). These tariffs, which go into effect today, will have a detrimental effect on not just Tequila and Canadian Whiskey but U.S. sprits as well.
Here is a statement from the White House explaining the policy.
“President Trump promised in November to “sign all necessary documents to charge Mexico and Canada a 25% Tariff on ALL products coming into the United States, and its ridiculous Open Borders. This Tariff will remain in effect until such time as Drugs, in particular Fentanyl, and all Illegal Aliens stop this Invasion of our Country!”
In reaction to the tariffs, the Distilled Spirits Council of the United States (DISCUS) released the following statement.
“We greatly appreciate and support President Trump’s leadership to protect the American people and jobs by pursuing fair and reciprocal trade. For decades, this model of fair and reciprocal trade has been in place for spirits between Mexico, Canada and the United States, and the U.S. hospitality industry has flourished as a result.
“We stand ready to work with the U.S., Mexican and Canadian governments to urge them to swiftly lift these tariffs off distilled spirits. With spirits products between our three countries already benefiting from fair and reciprocal trade, it makes no sense to have them embroiled in this trade dispute.
“Tariffs on spirits products from Canada and Mexico will jeopardize the industry’s contribution to the U.S. economy. The North American spirits sector is highly interconnected and, as a result, tariffs on Tequila and Canadian whiskey will harm U.S. spirits companies that have these products in their brand portfolios.
“American spirits consumers as well as restaurants and bars across our country that are still struggling following the pandemic closures will shoulder the burden of these tariffs. Tequilas, Mezcals and Canadian Whiskeys are rooted in geographical traditions and local craftsmanship that complement, rather than compete with, U.S. distilled spirits brands.
“We are concerned that Canadian stores may take U.S. spirits products off their shelves again and also fear that American whiskey will become embroiled in a new round of retaliatory tariffs.
“The Distilled Spirits Council, Tequila Chamber and Spirits Canada are committed to working collaboratively with all stakeholders to explore solutions that prevent tariffs on distilled spirits. Maintaining tariff free access for all distilled spirits is crucial for supporting jobs and shared growth across North America. ”
Background:
- According to an economic analysis by the Distilled Spirits Council, a 25% tariff on distilled spirits imports from Mexico and Canada could lead to a loss of more than 31,000 U.S. jobs.
- In 2024, the U.S. imported $5.2 billion worth of tequila and $93 million worth of mezcal from Mexico.
- In 2024, the U.S. imported $622 million worth of Canadian spirits.
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