Popular Mexican beers Modelo and Corona could get more expensive for US customers if the American companies importing them pass on the increased import taxes.
However, it’s also possible that rather than passing on the cost increase, firms could just import less.
Modelo became the number one beer brand in the US in 2023,, external and remains in the top spot, for now.
It’s more complex when it comes to spirits. The sector has been largely free of tariffs since the 1990s. Industry bodies from the US, Canada and Mexico issued a joint statement in advance of the tariffs being announced saying they were “deeply concerned”.
They say that certain brands, such as Bourbon, Tennessee whiskey, tequila and Canadian whisky are “recognized as distinctive products and can only be produced in their designated countries”.
So given the production of these drinks cannot simply be moved, supplies might be impacted, leading to price rises. The trade bodies also highlighted that many companies own different spirit brands in all three countries.
Credit: Source link
