Janice R. Andrews
Mexico’s tequila industry faces uncertainty after U.S. President Donald Trump imposed 25% tariffs on Mexican imports, threatening the booming sector. With over two-thirds of tequila exports—worth $4.5 billion—destined for the U.S., producers fear rising prices could push consumers toward alternative drinks.
The Tequila Regulatory Council reported 335 million liters of tequila were exported to the U.S. in 2023, making up 83.6% of total exports. Ana Cristina Villalpando Fonseca of the National Chamber of the Tequila Industry (CNIT) warned that higher prices could disrupt the entire supply chain, from agave farmers to bottlers and transporters. The industry supports over 100,000 jobs in Mexico.
Tequila’s popularity has surged in recent years, with celebrities and even tech mogul Elon Musk launching branded products. However, January 2025 saw a 34.6% spike in exports, attributed to stockpiling ahead of Trump’s tariffs.
The CNIT plans to diversify into other international markets while relying on the Mexican government’s efforts to mitigate tariff impacts. President Claudia Sheinbaum vowed to retaliate with unspecified measures, calling Trump’s tariffs unjust.
Meanwhile, U.S. Commerce Secretary Howard Lutnick hinted that tariffs on Mexico and Canada could be reduced soon, though pressure on China will remain. As tensions escalate, Mexico’s tequila producers brace for a challenging road ahead.
