Jose Cuervo tequila maker warns of potential Trump tariffs hit, shares fall

By Aida Pelaez-Fernandez

MEXICO CITY (Reuters) - Mexico's Becle, the maker of Jose Cuervo tequila, warned on Thursday that it could face an $80 million impact this year if U.S. President Donald Trump goes through with his threat of imposing tariffs next month on Mexican products.

Becle, the world's largest tequila producer, reported late on Wednesday a 21% net profit decrease in the fourth quarter, and said that changes in U.S. trade policy could adversely affect the company.

"We estimate the impact of these tariffs to be approximately $80 million in 2025," Becle Chief Financial Officer Rodrigo de la Maza said during a conference call with analysts.

Trump said his proposed 25% tariffs on Mexican and Canadian goods will go into effect on March 4 as scheduled because he said drugs are still pouring into the U.S. from those countries.

Despite the potential hit if tariffs are imposed, Becle "would be in a favorable position as we have proactively increased inventories in the U.S.," de la Maza said.

Mexican tequila makers expressed their concerns earlier this month, telling Reuters that a 25% blanket tariff could threaten their businesses.

Excluding any potential impact from tariffs, Becle expects its capital expenditures in 2025 to be between $110 million and $130 million, while net sales are expected to grow mid-single digits, de la Maza said.

"While we expect gross margins to be enhanced in 2025, we will maintain a cautious approach as we navigate through uncertainties," he added.

Becle's shares were down 5.6% - one of the biggest losers on Mexico's main stock index - wiping out 4.0 billion pesos ($195.63 million) from its market value.

($1 = 20.4932 Mexican pesos)

(Reporting by Aida Pelaez-Fernandez; Editing by Anthony Esposito and Bill Berkrot)

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