The price increase that may affect tequila in the USA can encourage replacement with other alcoholic beverages, says Ana Cristina Villalpando Fonseca, who leads the tequila industry organization in Mexico.
335 million liters of tequila, more than two-thirds of all tequila produced in Mexico last year, were exported to the USA, according to Mexico's regulatory council for tequila.
The US tariffs are feared to also affect subcontractors in the tequila industry, from agave farmers to bottle manufacturers and transporters. According to Villalpando, the industry employs more than 100,000 people in the country.