WASHINGTON, D.C., 03/04/2025 – Following the Trump administration’s implementation of 25% tariffs on Mexican and Canadian wine and spirits, Wine & Spirits Wholesalers of America (WSWA) is re-releasing critical economic findings from John Dunham and Associates (JDA) that detail the severe consequences for American businesses, jobs, and consumers.
With imported wine and spirits making up nearly 35% of the U.S. beverage alcohol market by volume, these tariffs now pose a direct and critical threat to the industry’s economic security, as agave-based spirits from Mexico and Canadian whisky are both category leaders in growth and consumer demand.
According to the latest data from WSWA’s SipSource (January 2025):
- Market Size: Agave-based spirits (tequila and mezcal) now account for 13% of total U.S. beverage spirits sales by volume and 21% by revenue.
- Hospitality Sector: In the on-premise sector (bars, restaurants, entertainment venues), agave-based spirits represent 20% of sales by volume and 27% by revenue, outperforming nearly every other spirits category.
- Canadian whisky remains the second-largest whisk(e)y category in the U.S., with a loyal consumer base and widespread distribution across all 50 states.
The Economic Toll of Tariffs on U.S. Jobs and Businesses
JDA’s economic analysis finds that the 25% tariffs on Mexican and Canadian wine and spirits will result in:
Economic Impact | Projected Losses | |
American Jobs Lost | 17,000 | |
Wages Lost | $937 million | |
Tax Revenue Lost | $1.8 billion | |
U.S. Economic Output Lost | $2.7 billion |
“WSWA’s nearly 400 family-owned member companies now face an immediate financial burden because of these tariffs," said WSWA President and CEO Francis Creighton. “There is no alternative for consumers looking for tequila and other origin-specific products; the cost of these tariffs will be paid by American businesses and consumers—not foreign companies. ”