Overview

• 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costs from stockpiling and storage may lead to higher tequila prices for consumers, even if the tariffs are permanently withdrawn.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.