Trump's Tariffs Threaten Celebrity Tequila Brands With Higher Prices

What do Matthew McConaughey, Dwayne “The Rock” Johnson and Kendall Jenner have in common? In the past five years, they’ve all used their megastardom to add to a growing lineup of celebrity tequilas—an already crowded category that now risks getting slammed by President Donald Trump’s incoming tariffs.Jenner’s 818 tequila business, an homage to her SoCal area code, has built up a half year’s worth of inventory across the US before a possible trade war with Mexico, says Mike Novy, chief executive officer of Calabasas Beverage Co., which operates the brand. The 818 brand is also reconsidering some of its planned limited-edition releases in the latest sign of the turmoil rocking the once-solid Mexican spirits market.“We will spend less on marketing programs with partners. We will delay hiring,” Novy says, adding that the goal is to prevent a sudden price hike that turns off buyers. A 750-milliliter bottle of 818 costs from $30 to $40, with its special reserve in an 8-shaped vessel selling for around three times that amount. “We will do all the things that we can do on our side to make sure that we are offering the best price to the consumer.”Trump’s tariffs, which now look set to go into effect on April 2, will include a 25% tax on all imports from Mexico. Tequila is uniquely exposed because the US’s southern neighbor produces it exclusively, primarily in the state of Jalisco. Analysts have long warned that such levies won’t only squeeze importers but will also cause a ripple through to bars, restaurants, liquor stores and casual consumers. As brands such as Jenner’s try to get ahead of the tariffs, tequila exports jumped 35% in January, data from Mexico’s Tequila Regulatory Council shows. The US is tequila’s largest market, accounting for more than 80% of global exports..Trump Vows 200% Tariff On EU Wine, Escalating Trade Tensions.The tequila industry as a whole will feel the impact if the levies land, but celebrity-backed brands may be hit the hardest. Many lack the supply chain expertise and negotiating power of major alcohol companies, says Vas Art, head of marketing at OhBev, an agency in Vancouver focused on alcoholic beverages. “While personal millions help get a venture off the ground, they don’t automatically translate into the structural reserves needed to pivot or negotiate like the industry’s established heavyweights,” he says, adding that the recent uncertainty surrounding tariffs has been paralyzing to some of them. “These brands know their hype is fragile.”Celebrity tequilas are a relatively new phenomenon, born in large part out of a fascination with fame that’s only grown amid the rise of social media. Although not the first, Casamigos, the brand co-founded by George Clooney, barreled onto the scene in 2013, quickly setting the bar for what celebrity tequila brands could be worth, as it went on to be sold four years later to liquor giant Diageo Plc for more than $1 billion, depending on performance over a 10-year period.Other celebrities quickly piled in. NBA phenom Michael Jordan became one of the big backers behind Cincoro Tequila around the same time singer Nick Jonas and designer John Varvatos rolled out their Villa One brand. Over the next few years, rollouts included LeBron James’ Lobos 1707, the Rock’s Teremana and comedian Kevin Hart’s Gran Coramino. In 2022 celebrity tequila volumes increased 40% globally, three times the growth of tequila overall, according to IWSR, a drinks data provider..India Cuts Customs Duty On Bourbon Whiskey To 50% .Creating a custom tequila can be relatively simple for an A-lister. Some distilleries in Mexico will develop a flavor and bottle it under a new label for as little as $5,000. But while producing a private-label tequila can be easy, establishing a new brand typically takes about two years, says Grover Sanschagrin, co-founder of online tequila database Tequila Matchmaker. Now the category is getting crowded, damping sales. Casamigos reported a net sales decline of 22% in the first half of Diageo’s 2025 financial year, which the company blamed on increased competition.“There’ve been so many new brands launched, and I do think some of that’s got to scale back,” Debra Crew, Diageo’s CEO, told reporters last month. She said retailers had struggled to achieve repeat sales—meaning consumers don’t always go back for a second bottle once the novelty had worn off. “There’s now a bit of retailer skepticism about just there having been so many new launches,” she said. “I would anticipate there be a few less.”For agave-based spirits, which include tequila and mezcal, new product releases dropped to 278 in 2024, from 346 in 2023, an almost 20% decline, according to IWSR. For total spirits, the decline was 9%, in part fueled by less alcohol consumption from young consumers. Rapper Megan Thee Stallion unveiled her line of tequila, Chicas Divertidas, in February to coincide with her 30th birthday. Before that, the buzziest celebrity tequila had been McConaughey’s Pantalones in October 2023, IWSR says..Trump Tariffs Are Good Thing For The World, Says Blackstone CEO As Markets Roil.Last year overall tequila volumes in the US increased only 1%, a major slowdown compared with the double-digit gains of previous years. The pullback has been especially tough on pricier bottles, including celebrity-branded ones, says Marten Lodewijks, president of IWSR US. “Anyone in the industry is looking at the space thinking, ‘This isn’t a great moment,’ and that’s reflected in the total number of new brand launches.”Distillers wary of the US slowdown—which tariffs are expected to make worse—are trying to stay ahead by targeting more sales to international markets. Casa Maestri, a distillery in Jalisco that’s behind more than 100 brands, is showing growth in Australia, Japan, Nigeria, Spain and the UK. “Expanding into these markets is crucial for the long-term sustainability of our industry, as we cannot rely solely on US sales to continue growing global awareness of tequila,” says Jose Coira, vice president for sales at Casa Maestri.Jenner’s brand, too, is branching outside its core US market. Already in Germany, it’s now eyeing “selective” entries including Italy and other northern European countries, Novy says, though international sales are only about 18% of its business so far. Still, the company expects to have 30% growth overall in 2025, he says, even with the likely Trump tariff disruptions. “We’re going to work like crazy to make that happen.” —With Dasha Afanasieva .Trump's Tariffs: Can Anyone Say What The Goal Is?

Trump's Tariffs Threaten Celebrity Tequila Brands With Higher Prices

Love it or hate it, the entertainer-turned-spirits-purveyor trend is about to hit a painful new roadblock.

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