U.S. Delays Mexico, Canada Tariffs For Another Month
U.S. trade policy continues to whipsaw, with the administration yesterday backing off most tariffs on Mexico and Canada for another month, after imposing 25% levies on products from both countries earlier in the week. The latest delay covers all goods traded under the U.S.-Mexico-Canada Agreement, a deal signed during President Trump’s first term, and includes Tequila, Canadian whisky, and other alcoholic beverages.
While yesterday marked another welcome reprieve for North American trade partners, the threat of tariffs continues to loom over the industry, with the administration adamant that its “reciprocal” tariffs on countries beyond Mexico and Canada will not be subject to exemptions.
According to data from WSWA, the industry fallout from the Mexico and Canada tariffs would be significant, potentially causing 17,000 lost jobs and $2.7 billion in economic output. WSWA notes that Canadian whisky is the second most popular kind of whisky in the U.S. and that agave spirits make up 13% of the spirits industry by volume and 21% by revenue. In the on-premise, agave spirits are even more crucial, making up 20% of sales by volume and 27% by value.
“WSWA’s nearly 400 family-owned member companies now face an immediate financial burden because of these tariffs,” said WSWA President and CEO Francis Creighton, before the latest monthlong delay was announced.“There is no alternative for consumers looking for Tequila and other origin-specific products; the cost of these tariffs will be paid by American businesses and consumers—not foreign companies.”
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