Tequila Industry Struggles With Costs and Uncertainty Over U.S.-Mexico Tariff Threats
Although the 25% tariffs on Mexican imports are currently suspended, the tequila sector faces financial strain from stockpiling, delayed investments, and potential price hikes.
- Tequila producers have stockpiled up to six months of inventory, incurring millions in overtime labor and storage fees.
- The uncertainty surrounding the tariffs has caused companies to delay hiring and product launches, leading to lost opportunities.
- Some restaurants and consumers have also stockpiled tequila, creating concerns of a temporary sales slowdown in the second quarter if tariffs are not imposed.
- Rising costs from stockpiling and storage may lead to higher tequila prices for consumers, even if the tariffs are permanently withdrawn.
- Producers are exploring alternative markets, raising concerns about a potential long-term decline in the U.S. tequila sector if tariffs are reinstated.
New York Post 
The Independent 
