What's the Tariff on Tequila / Mezcal?
All tequila and mezcal imported from Mexico.
Current Tariff Rate
25%
Pre-2025 Rate
0%
Rate Increase
+25pp
Price Impact
+25%
+$8.75
Real-World Price Impact
Before Tariffs
$34.99
Bottle of tequila
After Tariffs
$43.74
Bottle of tequila
That's $8.75 more per unit — a 25% price increase paid by the American buyer.
Note: Price estimates assume full tariff pass-through to consumers. Actual retail prices may vary — manufacturers may absorb some costs, shift production, or adjust margins.
The Story Behind This Tariff
Tequila and mezcal are Mexico's most iconic spirits exports and, by law, can only be produced in Mexico — making them impossible to substitute with domestic production. The 25% IEEPA tariff hits an industry that grew from $2B to $6B in US sales over the past decade, fueled by premiumization and celebrity brands. Jalisco state produces all tequila, while Oaxaca dominates mezcal. The tariff disrupts a remarkable success story: tequila surpassed bourbon as America's top-selling spirit category in 2023. Celebrity-backed brands (George Clooney's Casamigos, Dwayne Johnson's Teremana) accelerated premiumization, pushing average bottle prices from $25 to $40. The 25% tariff adds $8-12 per bottle, threatening the mass-market cocktail culture built around margaritas and palomas. Mexican agave farmers face demand destruction after many invested heavily in blue agave cultivation during the boom years. The bar and restaurant industry, where tequila cocktails drive enormous margins, faces menu repricing that could slow the spirits premiumization trend.
📦 Supply Chain
Primary Origin
Mexico
Made in USA
0%
Import Volume
$5.9B
Alternatives
None — tequila/mezcal must be produced in Mexico by law
📅 Tariff Timeline
1994
NAFTA eliminates tequila tariffs
0%2020
USMCA maintains duty-free spirits trade
0%2025
IEEPA tariff overrides USMCA on Mexican spirits
25%👥 Consumer Impact
Households Affected
68M
Annual Cost Per Household
$42
💡 Did You Know?
- •Tequila surpassed bourbon as America's highest-revenue spirit in 2023 — the tariff threatens that crown
- •George Clooney sold Casamigos for $1 billion in 2017, igniting the celebrity tequila boom now facing tariff headwinds
- •Blue agave takes 7 years to mature — farmers who planted during the boom can't pivot, even as demand drops
Tariff Details
- HTS Code
- 2208.90
- Current Rate
- 25%
- Pre-2025 Rate
- 0%
- Tariff Type
- IEEPA
Legal Authority
IEEPA Executive Order (April 2, 2025)
Effective: April 2, 2025
"Liberation Day" — broad tariffs under the International Emergency Economic Powers Act
The tariff on Tequila / Mezcal is paid by the American importer at the port of entry and passed through to consumers as higher retail prices. The foreign manufacturer does not pay the tariff.
Who Actually Pays This Tariff?
Despite claims that tariffs are paid by foreign countries, the 25% tariff on Tequila / Mezcal is paid by American importers — US companies that purchase these goods from abroad. The cost is then passed to American consumers through higher retail prices.
- ✓ The foreign seller receives the same price as before
- ✓ The US importer pays 25% of the customs value to CBP
- ✓ The retailer marks up the higher landed cost
- ✓ You pay more at the register: $34.99 → $43.74
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