ABC-7 Reports in Jalisco, Mexico on Tequila Tariffs & effects on imports to El Paso

TEQUILA, JALISCO (MEXICO) -- Recent negotiations between U.S. President Donald Trump and Mexican President Claudia Sheinbaum resulted in a 90-day extension for the existing 25% tariffs already in for exports to the US. After that period, the tariffs are expected to go up to 30%.

One of Mexico's most beloved exports, tequila, will not be immune from the projected tariff bump. To get answers for El Paso tequila enjoyers, ABC-7 anchor Paul Cicala traveled to Jalisco, Mexico, the heart of tequila country.

He spoke with tequila producers in Mexico about the anticipated tariff increase. He also spoke to tequila drinkers in El Paso to find out how their feeling about the upcoming increase.

El Pasoan Manish Sundrani, who just finished downing a shot of tequila at the Paso Del Norte Hotel's Dome bar, said, "It definitely could come into the equation of 'Do I need to be buying that tequila with that added tax, being that added tariff?'"

Many are concerned about potential price increases for Agave-based spirits, like tequila. 

Marcos Fernandez, who sells the agave favorite in the "pueblo magico" of Tequila, Jalisco (Mexico), opened up to Paul Cicala by saying: "We want to send bottles (of tequila) abroad, but, we'll have to pass on the costs and charges."  

Fernandez also staid that if tariffs go up, it still may inadvertently affect tourism in the town of Tequila, Jalisco.  

Americans certainly love their tequila, as the demand the spirit has more than doubled over the last decade. 

According to numbers from Statistica and Statinvestor, import volumes of tequila coming into the USA have shot up from 107.6 million liters being exported from Mexico in 2014, to over 255 million liters in the year 2024.

In addition, Reuters reports that in 2023, Tequila surpassed whiskey as the United State's second best-selling spirit after vodka.

In 2024, tequila and mezcal, coming from the agave plant, yielded 6.7 billion dollars in revenue. (That's 1.5 billion dollars more than American Whiskey, and just a half a billion less than vodka.)

So, have we seen effects on prices here in the El Paso area?

Adrian Gonzalez, the General Manager of downtown El Paso's Plaza Hotel, which is known to have the widest variety of agave spirits on USA soil, says the tariffs haven't yet been passed down to their consumers. 

"We're just waiting to see what happens, and our vendors, because they communicate with us every day, tell us 'Hey, this is the last delivery at this price, your tequila starting tomorrow will cost this much,' then we will make that decision," said Gonzalez, "Do we absorb part of it, affecting our profit, or do we just pass part of our profit to our clients? It's just going to have to depend."

Back in Jalisco, Mexico, Marcos Fernandez said, "It's not convenient for the USA or Mexico to increase the fees of imports."

Gonzalez added, "In some cases, we may be able to absorb the whole tariff to continue, not only pleasing our guests, because they are very loyal,  and if some (tequilas) go 30-35 percent more expensive they (still) may not move, so we're going to have to play it by ear."

For now, all eyes are on the next round of tequila tariff talks, as die hard agave drinkers and disributers must truly adopt the positive attitude of: "If life gives you limes... MAKE MARGARITAS!".

-Salud to that!