Thursday, October 9, 2025

Latest

Mexican Tequila Industry Faces Glut, Trade Threats as Demand Slows

Mexico’s tequila industry confronts mounting inventories and potential US tariffs as demand cools following years of explosive growth, industry data shows.

Inventories have reached 525 million liters, approaching the industry’s annual production of 599 million liters, according to figures shared with the Financial Times by the Tequila Regulatory Council. US consumption declined 1.1% in early 2023, contrasting with 17% growth in 2021.

The industry, which exported two-thirds of its production in 2023 with 80% destined for the US market, faces a possible 25% tariff threatened by incoming President Donald Trump. Spain and Germany, the next largest export markets, each account for just 2% of exports.

Major brands including Patron and Casamigos have reduced prices as consumer demand softens. Agave prices have also dropped from 30 pesos per kilo to between six and eight pesos for contracted suppliers, reaching as low as two pesos in the spot market.

The inventory buildup presents specific challenges due to Mexico’s warm climate, where tequila typically cannot age beyond three years due to rapid evaporation.


Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Fortune Bay: The Potential Billion Dollar Project

Japan Gold Enters New Chapter as Barrick Alliance Concludes – John Proust

Barrick Mining’s “Company Defining [Gold] Discovery”

Recommended

Nord Precious Metals Produces High Grade Silver Concentrate From Tailings

ESGold Secures $9 Million In Non-Dilutive Funding From Ocean Partners

Related News

Ackman Now Calls For Full 90-Day Pause On Tariffs, Bringing Down To 10%

Billionaire investor Bill Ackman is once again issuing dire warnings about President Donald Trump’s tariff...

Monday, April 14, 2025, 11:20:00 AM

Tariffs Galore: Trump Threats 25% Levy On Auto, Pharma, Semiconductor

In our next episode on tariffs, President Donald Trump has declared his intention to impose...

Wednesday, February 19, 2025, 11:21:00 AM

Trump Rules Out Gold Tariffs After Market Confusion

President Donald Trump said Monday that gold imports will not face U.S. tariffs, ending days...

Thursday, August 14, 2025, 03:15:00 PM

Canadian Auto Parts Giant Linamar Braces for US Tariff Impact

Linamar Corporation (TSX: LNR), one of Canada’s largest auto parts manufacturers employing 34,000 people globally,...

Monday, April 14, 2025, 03:40:00 PM

Ontario Premier Calls for Mexico’s Exit from North American Trade Pact

Ontario Premier Doug Ford on Tuesday called for Mexico’s potential exclusion from the North American...

Wednesday, November 13, 2024, 02:18:00 PM