US President Donald Trump followed through on his threat to impose new tariffs on Saturday. He raised taxes on imports from Mexico, Canada, and China, affecting a significant portion of U.S. imports.
New Tariffs on Imports
As part of his plan, Trump ordered a 25% tariff on goods from Mexico and Canada. Additionally, he increased tariffs on Chinese imports by 10%. These tariffs will take effect on February 4. The goal is to push Canada and Mexico to address issues related to immigration and drug trafficking.
![](data:image/svg+xml;charset=utf-8,<svg height="194px" width="259px" xmlns="http://www.w3.org/2000/svg" version="1.1"/>)
![](data:image/svg+xml;charset=utf-8,<svg height="1080px" width="1920px" xmlns="http://www.w3.org/2000/svg" version="1.1"/>)
![](data:image/svg+xml;charset=utf-8,<svg height="493px" width="877px" xmlns="http://www.w3.org/2000/svg" version="1.1"/>)
![](data:image/svg+xml;charset=utf-8,<svg height="318px" width="566px" xmlns="http://www.w3.org/2000/svg" version="1.1"/>)
Impact on Alcohol Industry
For business owners like Nicolas Palazzi, founder of PM Spirits, the tariffs bring concern. His company imports 20% of its products from Mexico. As a result, Palazzi expects the 25% tariff on items like mezcal and tequila to raise prices and reduce sales. “Definitely this is going to impact the business negatively. But can you really plan? No,” he said.
Small Businesses Struggle
Smaller businesses, in particular, will feel the strain. Ben Scott, an importer from California, explained that the tariffs will affect many people. “There’s just a huge cost that’s going to affect so many people,” he noted.
Global Impact
Moreover, the tariffs could lead to recessions in both Mexico and Canada. Dan Kelly, president of the Canadian Federation of Independent Businesses, warned of serious consequences. “It’s going to have an effect everywhere,” added Sophie Avernin, a director in Mexico, highlighting the risks to American-owned Mexican brands.
Uncertain Future
While Trump remains confident and dismisses concerns about the economic impact, analysts predict the tariffs will slow U.S. growth, raise prices, and cost jobs. The alcohol industry, which has already been struggling after the pandemic, now faces additional challenges.
Finally, Fred Sanchez, owner of Bad Hombre Importing in California, is contemplating selling his stock and possibly closing his business. Although he believes the tariffs might be temporary, he states that the damage is already done. “25% is just not something that we can realistically pass onto the consumer,” Sanchez explained.
As businesses await clarity, there remains uncertainty whether these changes will last or if they are just political moves.
