The Impact of Mexican and Canadian Wine and Spirits Tariffs on the U.S. Alcohol Industry
The recent 25% tariffs on Mexican and Canadian wine and spirits pose a serious risk to the U.S. alcohol industry, threatening 21% of the market and endangering 17,000 American jobs. Wine & Spirits Wholesalers of America (WSWA) has re-released an economic analysis from John Dunham and Associates (JDA) to highlight the devastating effects these tariffs will have on businesses, employment, and consumers.
The Growing Importance of Mexican and Canadian Wine and Spirits
Imported wine and spirits account for nearly 35% of the U.S. beverage alcohol market by volume. Among these, agave-based spirits from Mexico and Canadian whisky lead in both growth and consumer demand. The new tariffs disrupt this thriving market, affecting businesses at every level of the supply chain.
According to WSWA’s SipSource report from January 2025:
- Agave-based spirits (tequila and mezcal) now make up 13% of total U.S. spirits sales by volume and 21% by revenue.
- In the hospitality sector, these spirits represent 20% of sales by volume and 27% by revenue, surpassing most other categories.
- Canadian Whisky holds its position as the second-largest whiskey category in the U.S., boasting strong nationwide distribution and a dedicated consumer base.
Economic Fallout of the Tariffs
JDA’s economic study reveals the heavy toll these tariffs will take on the U.S. economy:
| Economic Impact | Projected Losses |
|---|---|
| American Jobs Lost | 17,000 |
| Wages Lost | $937 million |
| Tax Revenue Lost | $1.8 billion |
| U.S. Economic Output Lost | $2.7 billion |
A Direct Hit to American Businesses and Consumers
In a recent publication, WSWA President and CEO Francis Creighton emphasized the financial strain on nearly 400 family-owned member companies. “These tariffs leave consumers with no alternative for tequila and other origin-specific products. The cost will fall on American businesses and consumers, not foreign companies.”
What’s Next for the Industry?
With Mexican and Canadian wine and spirits playing such a vital role in the U.S. market, the industry must navigate the challenges these tariffs create. Businesses, policymakers, and consumers must stay informed and advocate for solutions that support economic stability and industry growth.
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Source of information
Wine & Spirits Wholesalers of America’s Article: Tariffs on Mexican and Canadian Wine and Spirits Place 21% of the U.S. Beverage Alcohol Marketplace at Risk, Threaten 17,000 American Jobs
The image of the article is courtesy of ©Ryan McVay via Canva.com
