With the threat of a 25% U.S. import tax hanging over them, Mexican tequila manufacturers are anxious that businesses they've spent years building will have the rug pulled out from under them. - REUTERS
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00:00Mexican tequila manufacturers are anxious about a potential 25 percent U.S. import tax
00:07that could harm businesses they have spent years building.
00:11Meli Barajas, owner of Azteca Wines and Spirits, says that her supply chain is now frozen.
00:17MELI BARAJAS, Owner, Azteca Wines and Spirits, Mexico The uncertainty is affecting the girls,
00:23the whole production system, everything we have worked for during so many years because
00:27of the tariff.
00:29U.S. President Donald Trump initially planned to impose the 25 percent tariff on Mexico
00:36and Canada. However, he agreed to a 30-day pause after they pledged to reinforce their
00:41borders.
00:43Made from prickly agave plant and used in cocktails like margaritas, tequila has surged
00:49in popularity in the U.S.
00:51The country imported $3.8 billion of tequila in the first nine months of 2024.
00:57According to the U.S. Distilled Spirits Council, this represents a 13 percent increase from
01:03the same period a year earlier and is more than the combined imports of whiskey, gin,
01:08rum brandy and vodka.
01:11Like French champagne or Italian parmesan cheese, products called tequila or mezcal
01:16must be made in Mexico. Tariffs would therefore increase prices in the U.S.
01:22For Barajas, if tariffs are imposed, U.S. buyers are likely to opt for other drinks.
01:28And that said, it has caused us a great surprise that they want to do this because it has taken
01:34us so many years to enter the palette of the United States.