SAN DIEGO (KGTV) — The Trump administration's proposed tariffs are expected to affect a range of goods, including oil, gas, and food. However, they will also impact one of the most popular imports from Mexico: Tequila.
At Tahona Mezcaleria in San Diego, owner Amar Harrag is preparing for the repercussions. The bar, which specializes in mezcal drinks, opened in 2018 and has faced numerous challenges, including the pandemic and inflation. The tariffs, which include a 25% tax on imported goods from Mexico, such as tequila and mezcal, would add another layer of difficulty.
“You're constantly monitoring your costs, and you know, as a restaurant, I think that’s the most challenging thing,” Harrag said.
The Distilled Spirits Council reports that tequila and mezcal account for $6.5 billion in spirit revenue in the U.S., second only to vodka, in 2023. The new tariffs are expected to significantly impact spirit prices.
“From the small producers that will be impacted because they just can’t sell their product to the people that sell the product. You know and don’t have the ability to do that because it’s too expensive,” Harrag added.
Harrag and his business partners are set to open a mezcal store in National City in the coming weeks. Although they have already ordered their initial stock, future purchases may be complicated by rising costs.
“It seems like at every turn, you have to look at additional costs to run our business, which results in that $1 to $2 increase,” Harrag explained.
With prices from mezcal producers expected to rise, Harrag anticipates having to increase his own prices as well.
“The ripple effect, we don’t know until we actually start seeing the new prices that would be generated from that. The bottom line is that those prices are gonna be added to the end buyers,” he stated.
President Donald Trump announced Monday he would pause his plan to impose tariffs on Mexico for a month after he spoke with Mexican President Claudia Sheinbaum.
"It was a very friendly conversation wherein she agreed to immediately supply 10,000 Mexican Soldiers on the Border separating Mexico and the United States," President Trump stated on Truth Social.
The 25% tariffs on Mexico imports were originally due to go into effect on Tuesday.
Harrag said it is a matter of waiting to see what the actual impact of the tariffs will be.
