President Reiterates Threat Of 25% Tariffs On Mexico, Canada As Soon As Tomorrow

President Trump confirmed last night that he intends to place 25% tariffs on Canada and Mexico as soon as February 1, reiterating his previous pledge. Still, it appeared details on the policy are still being worked out, with Trump noting that oil, for example, could be excluded. It’s unclear at the moment whether a reprieve could also be granted to the drinks industry, which has been full-throated in its opposition to the tariff plan.

A 25% tariff on Mexican goods could potentially cost American 14,000 jobs and $2.5 billion in economic activity, according to an estimate from John Dunham and Associates commissioned by the Wine & Spirits Wholesalers of America (WSWA).

Tariffs on Canada and Mexico would hit some of the spirits industry’s biggest brands. Crown Royal Canadian whisky (Diageo) as well as Tequilas Don Julio (Diageo), Patrón (Bacardi), Casamigos (Diageo), and Jose Cuervo (Proximo) all rank within the top 11 spirits labels in retail value terms in the U.S., according to Impact Databank. Additionally, Campari (Espolòn), William Grant (Milagro), and Mast-Jägermeister (Teremana) all count Tequilas as their top U.S. brands by retail value.—Daniel Marsteller

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