The Trump administration has implemented a 25% tariff on all imports of canned beer and empty aluminum cans starting Friday, according to a notice from the Department of Commerce.
Industry analysts expect the tariffs on canned beer imports to especially affect Constellation Brands. Constellation imports all of its beer from Mexico, including the Modelo and Corona brands; beer accounted for 82% of the company’s sales in its last quarter. Although Corona is better known for its glass bottle presentation, Modelo—the best-selling beer in the U.S.—is generally presented in cans.
Constellation’s shares fell less than 1% in after-hours trading on Wednesday, but concerns about tariffs have affected the company’s stock for months. Since Trump’s election in November, the company’s shares have dropped 22%.
For years, canned beer has been gaining market share against its bottled counterpart. Brewers can produce and transport cans more easily than glass bottles, which are heavier, leading to lower prices for canned beer for consumers.
The U.S. imports most of its aluminum from Canada. China and Mexico, the other two main targets of Trump’s trade policy, are also major exporters of aluminum to the U.S.
Industry concerned about 25% tariffs on empty aluminum cans and beers
American Aluminum supports tariff freedom while Trump says he will impose these duties on Canada and Mexico
Trump announces 25% tariff on imports from Canada and Mexico and additional tariffs on China
Constellation Brands announces price increase in Mexico
CONSTELLATION TO EXPAND PRODUCTION
CONSTELLATION BRANDS APPOINTS HOLLY LUKAVSKY SENIOR VICE PRESIDENT, HUMAN RESOURCES, BEER DIVISION
