Tequila dodges tariffs as US and Mexico reach agreement

Donald Trump has “indefinitely suspended” scheduled tariffs on Mexican imports, but warned the “very profitable” plan could be reinstated. Mexican trade – including the Tequila and mezcal industries – faced a crippling schedule of tax hikes for imports into the US in response to the “sustained influx of illegal aliens” at the US-Mexico border. At the end of May, president Trump announced he was “invoking the authorities granted to [him] by the International Emergency Economic…

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Trump threatens Tequila tariffs over illegal immigration

US president Donald Trump plans to impose a 5% tariff on all imported goods from Mexico – including Tequila and mezcal – in response to the “illegal migration crisis” at the US-Mexico border. In a statement posted on the White House website, Trump announced he was “invoking the authorities granted to me by the International Emergency Economic Powers Act” in order to “address the emergency at the southern border”. From 10 June, all goods imported…

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Canada and Mexico revoke American whiskey tariffs

The US has come to an agreement with Canada and Mexico to repeal retaliatory tariffs on American whiskey exports to both countries. Canada introduced a 10% tariff on American whiskey on 1 July 2018 in response to US president Donald Trump’s 10% and 25% import taxes on aluminium and steel respectively. Meanwhile, Mexico slapped a 25% retaliatory tariff on American whiskey from 5 June 2018. Chris Swonger, president and CEO of the Distilled Spirits Council,…

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US government closure ‘doubles’ TTB backlog

The five-week-long partial shutdown of the US government has “roughly doubled” the existing backlog of permit, formula and label submissions at the Alcohol and Tobacco Tax and Trade Bureau (TTB). The TTB was forced to cease operating while the US federal government underwent a partial shutdown over Christmas and into January. This was due to a political gridlock regarding US$5 billion of federal funding for US president Donald Trump’s border wall between the US and…

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Mexico: Premium spirits have room for expansion

The Mexican spirits market is young, dynamic and growing, especially at the top end, which suggests the best could be yet to come. *This feature was originally published in the October 2018 issue of The Spirits Business “A big deal looking good with Mexico!” tweeted US president Donald Trump on 27 August, as he prepared to rip up the North American Free Trade Agreement – and sure enough a new deal was announced the next…

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