Drink margaritas? Tequila prices are likely to rise because of U.S. tariffs on Mexico
Drink margaritas? Tequila prices are likely to rise because of U.S. tariffs on Mexico
Associated Press Published 11:22 a.m. ET June 7, 2019 | Updated 11:36 a.m. ET June 7, 2019
EL ARENAL, Mexico — After decades of building a domestic market for Tequila Cascahuín, Salvador Rosales readied the family business for a plunge into the U.S. export market this year. He made sure he had a stable supply of high-quality blue agave, the succulent whose juice is distilled into tequila, so that once they planted their flag, they wouldn't disappoint.
Tequila Cascahuín envisioned exporting about 350 to 420 cases to the United States this year and building from there. But those plans could be derailed by President Donald Trump's threat of tariffs starting at 5% and rising higher until he is satisfied Mexico is doing enough to stop the flow of Central American immigrants through its territory.
"We were just getting into the United States market with prices already impacted by the high price of agave," Rosales said. "With this increase, our sales are going to decrease."
Last week Trump shocked Mexico and many members of his own party with a June 10 deadline to impose the unilateral tariffs on all Mexican imports, potentially making avocados, flat screen TVS, cars and other products more expensive for U.S. consumers.
More:
https://www.usatoday.com/story/money/2019/06/07/u-s-tariffs-mexico-consumers-face-higher-tequila-prices/1380442001/
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