Consumer

Trump’s Tariff Convulsions Are Wreaking Havoc on Tequila Makers

  • Delay spurred rush of orders but business has now dried up
  • Uncertainty making it hard for Mexican producers to plan ahead
A field worker uses a coa de jima tool to cut the leaves off a blue agave plant during harvest in the town of Tequila, Mexico.Photographer: Mauricio Palos/Bloomberg
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US President Donald Trump’s on-again, off-again tariff threats against Mexico are giving executives in the country’s iconic tequila industry a splitting headache.

Many buyers rushed their orders after Trump first postponed the measures by a month so they could get merchandise across the border before the levies came into force. Now that another deadline is approaching, business is drying up until the impact of the tariffs becomes clear, with some payments being delayed amid increased inventories, according to producers in Jalisco state.