9 News: Stock up on Mexican beer? A liquor store owner fears a tariff hike might increase prices

December 6, 2024

DENVER — Coloradans are trying to figure out what to buy now before President-elect Donald Trump's promised tariffs raise prices. Trump posted on social media last week stating he would impose 25% tariffs on all goods imported from Mexico and Canada on his first day in office unless those countries start to secure their borders. 

Economic experts believe tequila and Mexican beers will get a lot more expensive. 

"It's a scary situation. We don't have the capacity to absorb price increases and not pass them along to customers," Matthew Amerson the owner of Mayfair Liquors in Denver, said.  "Let's hope it's a negotiating tactic, and it's not reality." 

Trump urged Mexico and Canada to stop illegal immigration and the flow of illegal drugs such as fentanyl into the United States. If the tariffs are imposed, it would have sweeping impacts across the country. 

"I'm not really convinced that this would actually happen," MSU Denver Economics professor, Kishore Kulkarn, said.  "It's not a good idea. It's 'bob,' that's what I say to my students, 'bob' means bunch of bologna." 

Professor Kulkarni said Mexico, Canada and China together make up about 46% of our total imports. He said major tariffs would not impact alcohol prices but also:

  • Raw materials used for production

  • Car parts

  • Electronics 

  • Some fruits and vegetables.

"They just raise the prices and then the consumers end up paying for all that higher tariff," Kulkarni explained. "The loss to consumers is overwhelming higher." 

Amerson hopes it does not get to that point, but he said he is preparing just in case.

IRBE Journal2024