Mexico Escapes the Tariff: Happy Cinco de Mayo!

Monday marks Cinco de Mayo — not actually much of a holiday in Mexico, but an important date for Mexican food and drink-loving Americans, to be sure.

This year, the probability is that Americans’ Cinco de Mayo is costing slightly more than last year, thanks to lingering Bidenflation. Perhaps we should count ourselves lucky. Early in the second Trump administration, the White House planned to impose tariffs on goods coming in from Mexico despite the terms of the U.S.-Mexico-Canada trade agreement, USMCA. But Trump deciding instead to stick by his signature trade deal from his first term has meant revelers have dodged an extra 25 percent hit to their wallets on items ranging from tequila to beer to tomatoes to avocados to onions.

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Mexico is the top country of origin for all of these foods, and yes, the drinks, too. Herez and Cholula salsas are also made in Mexico, though as we all know from Pace’s “New York City” ads in the 1990’s, one can of course buy American-made salsas with ease. They just might not satisfy picky consumers’ tastes.

U.S. consumers’ reliance on imported product from Mexico shouldn’t be surprising where tequila is concerned — though it is worth noting that as of 2022, over twice as much of it sold in the U.S. than in Mexico, so the size and scope of the U.S. market might cause some to do a double take.

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