The warning comes after President-elect Donald Trump outlined plans to implement 25% tariffs on all imports from Canada and Mexico when he assumes workplace in January in retaliation to “hundreds of individuals pouring via Mexico and Canada, bringing crime and medicines at ranges by no means seen earlier than”.
In an announcement on his social media platform Reality Social, Trump stated he would “signal all mandatory paperwork to cost Mexico and Canada a 25% tariff on all merchandise coming into the US” on his first day in workplace.
In response to this proposal, Distilled Spirits Council president and chief govt, Chris Swonger stated: “Our business has been weighed down by retaliatory tariffs as a part of unrelated commerce disputes since 2018, which crashed our exports harming hundreds of distillers and their farmers throughout the US.”
He continued: “We at the moment are at the moment going through the specter of a devastating 50% tariff on American whiskey by the EU on the finish of March 2025. Imposing a tariff on Tequila and Canadian Whisky from two of our largest buying and selling companions may kick off extra retaliatory tariffs on American spirits to Canada and Mexico.
“Slapping a tariff on Tequila and Canadian Whisky won’t increase American jobs just because they can’t be produced in the US… tariffs on spirits merchandise from our neighbours to the north and south are going to harm US shoppers and result in job losses throughout the US hospitality business simply as these companies proceed their lengthy restoration from the pandemic.”
In response to DISCUS information, in 2023, the US imported $4.6 billion of tequila and $108 million of mezcal from Mexico and $202.5 million of whiskey from Canada.
In the identical yr, Mexico was ranked the third-largest export marketplace for US-distilled spirits valued at $139 million whereas Canada the second-largest export marketplace for American spirits and exports, value $255 million.
