BALTIMORE — Initially, businesses took a wait and see approach, general manager of Lighthouse Canton Richard Harris says. But now it's more like a "brace for impact."
On Monday, the White House announced 25% tariffs on Canadian and Mexican imports would take affect at midnight.
"If you're a tequila drinker, good luck," Harris said. "Don't panic. There's still plenty of good stuff out there. If you're a tequila drinker, we'll do what we can to help you out. It might be an expensive Cinco de Mayo this year."
Higher costs are anticipated for customers who have a preference for drinks from north or south of the border, including the agave-based liquor, as well as Canadian whiskey, beer and Kahlua.
"There is a certain amount of cost that distributors can absorb to mitigate the shock, but I think it's not a case of if but when," he said. "Will we have to pass it on? We can adjust things accordingly and try to make it as painless as possible as we can but I think at some point, it's unavoidable."
They haven't seen the prices go up from their wholesaler yet nor have they increase their own, but economists anticipate the reaction to the tariffs is swift, and will raise costs almost immediately.
Tequila drinkers beware: New tariffs could affect your favorite beverage
"Merchants are going to start increasing the prices of their products, they have uncertainty in where they're getting things from," economics professor at Towson University Tom Rhoads said.
Rhoads also expects buyers will be stocking up, increasing costs as well.
Though it might be tough to swallow now he says it won't last forever.
"I think, in the long run, I think it's actually gonna be helpful but we've got to get through this short run, kinda very painful process first," he said.
Maryland imports a combined total of $7 billion in products from both Canada and Mexico annually.
The industries that will bear the brunt of the impact include automobile, communications equipment, metals, minerals and equipment.
