Chicago-area restaurants brace for impact of tariffs on imported Mexican beer, liquor

SOUTH BARRINGTON, Ill. (WLS) -- The latest information from the White House is that tariffs would be imposed on products coming from Mexico on April 2.

The tariffs would not only include produce, but also beer, tequila and other products they sell at Moe's Cantina in Chicago and many other local restaurants.

ABC7 Chicago is now streaming 24/7. Click here to watch

Mexican beers like Modelo and Corona are among the best selling in the country, especially at Moe's Cantina. They also have a bar dedicated to tequila and Mezcal, which also come from Mexico.

Moe's Cantina owner Sam Sanchez said a 25% tariff would definitely have an impact on his business.

"Products like tequila, Mexican beer, you can't substitute those products," Sanchez said.

The cooler is also full of produce much of which is also imported from Mexico, and all of it could be subject to tariffs.

RELATED | Chicago-area breweries brace for impact of Trump's 25% tariffs on steel, aluminum imports

While some of that produce is also grown in America, deportation policies are having an impact on supply as well.

"Because of the mass deportation fear, there's no one to pick the crop," Sanchez said. "We were in a very dangerous situation."

They use plenty of Mexican produce at The Greggory in South Barrington as well. They grill some of their vegetables in the large open fire oven.

The restaurant has only been open for a week, and they are drawing big crowds, but they are concerned about the future. They also have a large wine room with numerous bottles from European countries, including Italy, France and Greece. President Donald Trump has threatened to add a 200% tariff on those wines in response to a 50% tariff the European Union has place on American whiskey.

READ MORE | Trump threatens 200% tariff on all wine, champagne and alcoholic products from EU

"We do have a significant number of Italian, Spanish, and French wines as well," said Gregg Horan with The Greggory. "Ah, we'd probably not purchase them if they were up 200% raise in price."

With the status of the tariffs changing almost daily, it's frustrating for many restaurant owners. However, they said it also gives them hope that the tariffs can somehow be avoided.