The warning comes after President-elect Donald Trump outlined plans to implement 25% tariffs on all imports from Canada and Mexico when he assumes office in January in retaliation to “thousands of people pouring through Mexico and Canada, bringing crime and drugs at levels never seen before”.
In a statement on his social media platform Truth Social, Trump said he would “sign all necessary documents to charge Mexico and Canada a 25% tariff on all products coming into the United States” on his first day in office.
In response to this proposal, Distilled Spirits Council president and chief executive, Chris Swonger said: “Our industry has been weighed down by retaliatory tariffs as part of unrelated trade disputes since 2018, which crashed our exports harming thousands of distillers and their farmers across the United States.”
He continued: “We are now currently facing the threat of a devastating 50% tariff on American whiskey by the EU at the end of March 2025. Imposing a tariff on Tequila and Canadian Whisky from two of our largest trading partners could kick off more retaliatory tariffs on American spirits to Canada and Mexico.
“Slapping a tariff on Tequila and Canadian Whisky will not boost American jobs simply because they cannot be produced in the United States… tariffs on spirits products from our neighbours to the north and south are going to hurt US consumers and lead to job losses across the US hospitality industry just as these businesses continue their long recovery from the pandemic.”
According to DISCUS data, 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 same year, Mexico was ranked the third-largest export market for US-distilled spirits valued at $139 million while Canada the second-largest export market for American spirits and exports, worth $255 million.
