SIERRA VISTA, Ariz. (KGUN) — Drinks, like margaritas, at local bars could see an increase in price if or when President Donald Trump's tariffs on Mexico and Canada go into place—potentially having a big impact on small businesses.
"I don't know what is worse, the tariffs or the constant starting and stopping of them, because for me, and I think for a lot of small business owners, you have to make decisions today for what tomorrow is going to look like,” said the owner of Tell Mama, Vanessa Laurin.
Laurin opened her Sierra Vista cocktail bar in September 2023.
“We're a new business," she said. "So any new business, you have your bumps, but I feel like this year in particular, we've really started to catch some steam.”
One of her favorite drinks on the menu— a margarita. It's a drink she makes with ingredients only from Mexico.
"We've always tried to emphasize buying smaller, family-owned brands of tequila, which isn't super easy when you're outside of Mexico, but that's always been something that's important to us,” Laurin said.
She purchases tequila, Agave, limes and other liquors from Mexico. Tequila is only made in Mexico, and is regulated by the Mexican government. A 25% tariff means higher costs for consumers.
"We have to add our markup as well because, you know, we have bills to pay and we have mouths to feed,” Laurin said.
Her dilemma: "How expensive can we make a margarita for people to still want to, you know, come in and spend money with us?”
The questions may cause Laurin to laugh, but is an answer she needs so she can stay open.
"The margarita sort of represents what's coming for all of us in the bar business," Laurin said. "It's this beloved cocktail that everyone knows everyone loves, is suddenly going to be maybe a little bit more difficult for some people to get.”
Trump delayed the tariffs on Mexico until April—leading to more questions than answers for Laurin and her suppliers.
“When you have such a chaotic situation, economically, and also just with a lot of rhetoric that just flip flops back and forth," Laurin said. "It's hard to, you know, have a plan, and we as a business have to have a plan, we have to know what the next few months are going to hold for us so that we can make decisions.”
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Alexis Ramanjulu is a reporter in Cochise County for KGUN 9. She began her journalism career reporting for the Herald/Review in Sierra Vista, which she also calls home. Share your story ideas with Alexis by emailing alexis.ramanjulu@kgun9.com or by connecting on Facebook.
