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STZ
CNBC
139 days

Trump administration puts 25% tariff on all canned beer imports, empty aluminum cans

1. 25% tariffs on imported canned beer affect Constellation Brands significantly. 2. Constellation sources all its beer from Mexico, primarily Modelo and Corona. 3. Beer sales accounted for 82% of Constellation's recent quarterly revenue. 4. Shares have decreased 22% since Trump's election due to ongoing tariff concerns. 5. Cans dominate beer distribution with 64.1%, further impacting Constellation's costs.

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FAQ

Why Bearish?

The 25% tariff directly increases costs for Constellation, likely lowering profit margins. Similar historical events, like trade wars, have negatively impacted stock prices in the consumer goods sector.

How important is it?

Tariffs will affect operational costs and consumer prices, altering sales dynamics for STZ significantly. The importance is high due to the potential for declining revenues and market reaction.

Why Short Term?

Immediate effects from tariffs will be felt in upcoming financial reports and inventory costs. The impact is likely to persist until a resolution or change in trade policy occurs.

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