Trump tariffs leave Mexican tequila producers with sour taste [Video]

Mexico’s booming tequila industry was left reeling Wednesday after US President Donald Trump slapped sweeping tariffs on the Central American nation that producers say threaten the popularity of its most famous liquor.

Trump imposed 25 percent levies on Mexico and Canada, and doubled tariffs on China, prompting jitters on global markets and fears the spat is devolving into a brutal trade war.

More than two-thirds of tequila produced last year was exported to the United States — 335 million liters of almost 500 million, according to Mexico’s Tequila Regulatory Council.

The US market makes up 83.6 percent of tequila exports, representing $4.5-billion worth of liquor.

“The possible increase in tequila prices in the United States could encourage substitution with other alcoholic drinks,” said Ana Cristina Villalpando Fonseca, head of the National Chamber of the Tequila Industry (CNIT).

The tariffs risk affecting the whole supply chain, from producers of agave — …