Tequila Tariffs: The High Stakes for Agave Spirit Giants

Tequila and mezcal imports worth $3 billion face risk from proposed U.S. tariffs. Diageo and Becle, key producers, dominate the U.S. market. The tariffs, driven by potential trade policy changes under Trump, could disrupt growth, affect pricing, and impact industry employment as demand stabilizes post-pandemic.

With $3 billion in tequila and mezcal imports potentially affected by U.S. tariffs, major producers like Diageo and Becle are on high alert. The proposed trade changes could have serious implications for these spirits, which are crucial to their U.S. market dominance.

Diageo, the world's leading spirits company, and Becle, a giant in tequila production, face possible disruption from President-elect Donald Trump's suggested 25% import tariffs on goods from Mexico. This threat comes as these companies rely heavily on tequila for U.S. sales growth, a market they currently lead.

While the industry braces for possible impacts, the Distilled Spirits Council of the United States warns that such tariffs could increase prices and cost jobs. Companies are preparing strategies to offset these changes, mindful of the potential decrease in consumer demand.

(With inputs from agencies.)