Constellation Brands Down 4% Amid Trump's 30% Tariff Threat

Constellation Brands shares are down 4% to $164.81 after President Trump threatened 30% tariffs on all goods from Mexico and the EU if no trade agreement is reached by August 1. Other spirits makers, including Brown-Forman, Boston Beer, and Molson Coors, are also trading lower. The tariffs would impact Constellation's imports of Mexican beer brands Modelo, Corona, and Pacifico into the US.

Constellation Brands (NYSE: STZ) shares are down 4% to $164.81 following President Trump's threat of 30% tariffs on all goods from Mexico and the European Union (EU) if no trade agreement is reached by August 1. The announcement has sent shockwaves through the spirits industry, with other major players like Brown-Forman, Boston Beer, and Molson Coors also seeing their stocks drop [1].

Constellation Brands, which relies heavily on aluminum cans for its popular Mexican beer brands like Corona and Modelo, is particularly vulnerable to these tariffs. The company has already been significantly affected by recent tariff developments, particularly those targeting aluminum imports. In June, the U.S. administration doubled tariffs on steel and aluminum imports to 50%, and over the weekend, President Trump announced a new round of 30% tariffs on imports from the EU and Mexico. These tariffs are expected to increase costs and squeeze profit margins for Constellation Brands [1].

The company estimates the direct impact of the aluminum tariffs will be about $20 million over the fiscal year. Executives have acknowledged that the added costs cannot be fully offset by price hikes and will represent a notable hit to financials. During the company's last earnings conference call, STZ management also warned that the company may not be able to generate enough volume to offset any tariff impact [1].

The primary beers that Constellation Brands imports into the U.S. include Corona Extra, Corona Light, Corona Premier, Corona Familiar, Modelo Especial, Modelo Negra, Modelo Oro, Modelo Chelada (a lineup of flavored beers), Pacifico, and Victoria. The tariffs on Mexican and EU goods could significantly impact the company's ability to maintain its current sales volumes and profitability [1].

The broader market has also reacted negatively to the tariff threats, with the S&P 500 Index down 2% at 2:41 p.m. on Monday. Investors are digesting the weekend's tariff escalation and the resulting market anxiety. Constellation Brands was the second biggest decliner in the S&P 500 Index on Monday, with shares down 4.3% at 2:41 p.m. The stock is down more than 25% on a year-to-date basis [1].

References:
[1] https://seekingalpha.com/news/4467241-constellation-brands-is-among-the-most-tariff-impacted-stocks-in-the-sp-500
[2] https://www.tradecomplianceresourcehub.com/2025/07/14/trump-2-0-tariff-tracker/