How United States, Canada, and Mexico Trade Tensions Are Shaking Up Your Drink Menu
A Better Sip of Trade Wars
As if inflation and supply chain woes weren’t enough, the latest round of tariffs between the U.S., Canada, and Mexico is coming straight for your glass. Whether you’re a whiskey enthusiast, a tequila connoisseur, or just someone who enjoys a casual cocktail, these trade tensions could soon hit your wallet—and your bar menu.
Let’s break it down.
The Shot Heard 'Round
North America
On March 4, 2025, the Trump administration slapped a 25% tariff on Canadian and Mexican imports and an extra 10% on Canadian energy products—citing “extraordinary threats to U.S. national security” under the International Emergency Economic Powers Act (IEEPA).
Not surprisingly, Canada fired back with a 25% tariff on $30 billion worth of U.S. goods, including—you guessed it—alcoholic beverages. Because if there’s one thing politicians know how to do, it’s make a tense situation even more expensive.
Your Bar Tab’s
New Best Friend: Inflation
So, what does this mean for you? In short, get ready to pay more.
According to Yale’s Budget Lab, these tariffs could increase overall prices by 1.0–1.2%, costing the average U.S. household $1,600–$2,000 in 2024 dollars.
And if you love American spirits? Well, Chris Swonger, CEO of the Distilled Spirits Council (DISCUS), put it bluntly: “This aggressive retaliation targeting American spirits is extremely disappointing and counterproductive.”
Provincial Prohibition?
In a surprising move, some Canadian provinces aren’t waiting for federal action.
- British Columbia banned U.S. alcohol from Republican states in BC Liquor Stores
- Ontario’s LCBO (Liquor Control Board of Ontario) is pulling U.S. brands from shelves
For major American players like Brown-Forman (parent company of Jack Daniel’s), this is a nightmare. If this trend continues, some U.S. distillers could see their biggest international market dry up fast.
Mexico’s Margarita Markup
Mexico hasn’t fully outlined its counter-tariffs yet, but let’s be real: Tequila is a billion-dollar powerhouse in the U.S.. Any disruption could reshape the entire spirits market—especially since tequila just surpassed whiskey as America’s fastest-growing spirits category.
Will American drinkers have to pay a premium for their favorite agave-based spirits? Don’t be shocked if that top-shelf margarita gets even pricier.
Our Take: A Sobering Situation
The alcohol industry is no stranger to challenges, but these tariffs could reshape North American trade in a major way.
For consumers: Expect higher prices, fewer imports, and possibly some unexpected shortages. 
For producers: This is a wake-up call to diversify, innovate, and rethink sourcing strategies.
But if there’s a silver lining, it’s this: We could see a booming demand for local, craft, and alternative spirits. Maybe it’s time to check out that small-batch distillery in your own backyard.
What's Next?
With tensions escalating, negotiations are still on the table—but don’t expect a quick fix. In the meantime, if your drink of choice is imported, you might want to stock up now.
Because in the world of trade wars, today’s price hike might be tomorrow’s “good old days.”
Cheers to staying ahead of the game!
—Sam
- Sam Anderson
Just Pick Up The Phone 📞 | Joy 🦋 | Empowering individuals through meaningful connections, one person at a time.