Tariff Threats Loom: Are Mexico and Canada First in Line?

President elect Trump has announced that he will impose new tariffs on Mexico, Canada, and China on day one of his presidency - January 20, 2025. For Mexico and Canada, the amount Trump is suggesting is 25% and according to Trump, the tariffs will be imposed to pressure these countries into taking action to prevent illegal immigration and drug trafficking into the USA. For China, the announced tariff is 10%.

For the beverage alcohol industry, these tariffs would be devastating and could also lead to retaliatory tariffs on USA beverage alcohol shipped to Canada and Mexico. WSSA supports statements from other industry associations in fighting to reach agreements to exclude beverage alcohol from tariffs. Chris Swonger, President and CEO of DISCUS states, “At the end of the day tariffs on spirits products from our neighbors to the north and south are going to hurt U.S. consumers and lead to job losses across the U.S. hospitality industry.”

In terms of statistics, DISCUS also published key statistics on the trade, with 2023 imports of tequila/mezcal from Mexico at over $4.5 and from Canada, the number tops $700 million of Canadian whiskey and spirits imported into the USA. Both Mexico and Canada are strong markets for USA exports as well. We are keeping our eye on all of the tariff threats that are looming and will continue to send updates as well as opportunities to join the efforts to ensure tariffs are not imposed on beverage alcohol imports or on USA products shipped overseas.