With tariffs on Mexican alcohol on hold, Lincoln bar owner braces for uncertainty

LINCOLN, Neb. (KLKN) – The tariffs on Mexico and Canada have been paused for 30 days.

But Mexico is one of the top importers of alcohol into the U.S., so if the tariffs ultimately take effect, local restaurants and bars could pay more.

In 2024, the United States imported $5 billion of liquor and $5.9 billion of beer from Mexico.

According to Wells Fargo, Modelo and Corona beer, as well as tequila, could see costs leap 16% under President Donald Trump’s proposed tariffs.

This would likely raise prices by about 4.5%.

Pete Watters, the owner of The Zoo Bar, said he expects to see a price increase for some products.

“I’m sure there will be some supply chain issues,” he said. “I think we have 10 to 12 Mexican beers right now and then quite a few tequilas. Tequila has to come from Mexico; it can’t come from any other country. Occasionally we have Mezcal. So it would affect a fair amount of products.”

Important supplies for the alcohol industry, including steel, aluminum and grain could also be impacted by the tariffs, causing a slowdown in production.

Watters said it’s hard to prepare when the future is so unclear.

“You don’t know what people are doing to prepare for it,” he said. “Are they stocking up on this stuff so they have a six-month supply before it happens? It’s hard to know what they’re doing. We’ve had a little bit of warning, not a whole lot, to put their ducks in a row. It would definitely be disruptive if it’s long term.”

In exchange for a 30-day pause on the tariffs, Mexico’s president has agreed to send 10,000 soldiers to the border to help stop the flow of fentanyl and migrants into the United States.

And the U.S. will work to prevent high-powered weapons from entering Mexico.

Trump has tasked the secretaries of state, treasury and commerce with working with high-level representatives of Mexico to achieve a long-term deal between the two countries.

Experts say without that deal, you can expect to see prices soar.

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