It’s effectively a tax on partying: Just in time for summer in the U.S., the cost of chilling out with some guacamole and a margarita is about to go up for consumers.
President Donald Trump on May 30 issued a new threat to slap tariffs of as much as 25% on goods from Mexico, an escalation in his trade war that would raise the prices Americans pay for avocados and tequila.
Autos are by far the largest category of Mexican-made products sold in the U.S., and top manufacturers from Audi AG to Volkswagen AG produce vehicles in the country. Oil refineries in Louisiana and Texas, as well as builders reliant on imported steel, could be hit.
At the same time, Mexico also is a big supplier of fruit and drinks, and Trump’s latest volley may, therefore, mean less joy in Margaritaville this summer.
Guacamole
Americans should be prepared to pay more for guacamole, avocado toast and many other items at restaurant chains like Chipotle Mexican Grill Inc. or Panera Bread Co. The fruit is on almost h..