Trump Imposes 25% Tariffs on Mexico and Canada

Zim Now Writer

US President Donald Trump has officially approved the imposition of 25% tariffs on goods imported from Mexico and Canada, set to take effect on March 4, 2025.

This move is poised to significantly impact the spirits industry, including popular beverages such as tequila, mezcal, and Canadian whisky.

The tariffs are part of Trump's ongoing campaign to combat illegal migration and the flow of fentanyl into the United States, which he attributes to both Mexico and Canada.

In a statement on the Truth Social platform, Trump reiterated that the tariffs would go ahead as planned, citing the need to address the ongoing drug crisis.

He warned that the illegal drug trade, especially fentanyl, continues to claim thousands of lives, adding urgency to his decision.

Canadian Prime Minister Justin Trudeau, however, has vowed a strong response, warning that if the tariffs are enforced on March 4, retaliatory tariffs worth US$106.6 billion will be imposed on the US.

Trudeau’s government has already begun preparing for the potential fallout, including pulling American-made spirits from shelves in several provinces like Ontario, British Columbia, and Nova Scotia.

The situation mirrors past tariff disputes between the US, Canada, and the EU. Previously, the US had imposed tariffs on steel and aluminum from the EU, which led to retaliatory measures against American whiskey and other products.

In 2023, the EU extended a tariff suspension on American whiskey until March 31, 2025, with a possible increase to 50% if no new agreement is reached.

As the situation unfolds, the spirits industry is bracing for significant financial losses. Proximo Spirits, the company behind Jose Cuervo Tequila, has estimated an US$80 million impact on its business if the tariffs go ahead.