Sipping Through Chaos: Agave Spirits, Tariffs, and Resilience

The United States has long been the dominant importer of tequila, accounting for approximately 84% of Mexico's total tequila exports in 2024. This trade relationship has fueled the growth of the tequila industry, solidifying its place as a cornerstone of the global spirits market due to its rapid growth, cultural significance, and influence. However, the imposition—and subsequent removal—of a 25% tariff on Mexican goods, including tequila, has revealed vulnerabilities and opportunities within this dynamic.

 The Impact of Tariffs on the Tequila Industry

When the 25% tariff was briefly imposed, it created a ripple effect across the tequila industry. The U.S. imported $5.2 billion worth of tequila in 2024, and the tariff would have increased costs significantly. For example, a 25% tariff could have added $1.3 billion in additional costs, which would likely have been passed down the supply chain, leading to higher prices for consumers (or reduced margins for sellers). This threatened to slow the rapid growth of tequila sales in the U.S., a market that has been pivotal for the industry's expansion.

For smaller producers, the tariffs posed a financial threat since they would have to be able to absorb the additional costs. Larger brands, while better equipped to weather the storm, might have also faced challenges in maintaining competitive pricing and market share.

The Tequila Regulatory Council’s (CRT) Role

The Tequila Regulatory Council (CRT) plays a vital role in ensuring tequila's authenticity and production standards, but its broader governance has faced significant criticism. Industry voices like Grover and Scarlet Sanschagrin, founders of Tequila Matchmaker¹, and tequila educator Jay Baer², have pointed out the CRT's resistance to independent transparency efforts, such as additive-free certifications, viewing these as threats rather than opportunities. During the tariff period, the CRT’s lack of visible support for tequila producers further fueled frustrations, with distilleries left to navigate challenges independently and agave farmers accusing the organization of favoring larger producers at the expense of smaller operations and agave-growing families³.

These criticisms highlight the perception of the CRT as more focused on control and bureaucracy than proactive advocacy for producers. From tolerating questionable practices like blending tequila with sugarcane alcohol³ to its perceived inaction during industry challenges, the CRT has faced amplified calls for reform. To regain and reestablish trust, the council should make an effort to prioritize equitable support for all producers, embrace transparency, and evolve its practices to safeguard both the authenticity of tequila and the livelihoods of those who produce it.

 Opportunities for the U.S. Market and Gavé's Vision

With the removal of tariffs, the tequila industry has an opportunity to recalibrate and strengthen its position in the U.S. market. For Gavé, this presents a unique chance to differentiate itself as a producer of additive-free American agave spirits. By sourcing piñas from Mexico and crafting spirits on U.S. soil, Gavé combines the best of both worlds—honoring tradition while embracing innovation.

Looking ahead, Gavé's vision of cultivating agave domestically aligns with broader industry trends toward sustainability and self-reliance. This approach not only mitigates risks associated with international trade but also positions Gavé as a pioneer in the evolving landscape of agave spirits.

Future Outlook

The brief imposition of tariffs on Mexican tequila underscored the interconnectedness of the U.S. and Mexican markets and the challenges of navigating global trade. While the removal of tariffs has alleviated immediate pressures, it has also highlighted the need for resilience, innovation, and reform within the industry.

At Gavé, we see this as an opportunity to lead by example—crafting premium, additive-free American agave spirits that celebrate the rich heritage of tequila while forging a path toward a sustainable future. As the industry continues to evolve, we remain committed to setting new standards of excellence and integrity. Until next time; cheers!

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1.  Grover and Scarlet Sanschagrin, Tequila Matchmaker and Additive-Free Alliance, 2025.

2.  Jay Baer, Tequila educator, commentary in various industry interviews, 2025.

3.  El Economista, reports on agave farmers and CRT protests, 2025.