Major alcohol companies, including Johnnie Walker and Corona beer, may face significant challenges due to new tariffs imposed by U.S. President Donald Trump. These tariffs are part of a trade dispute and will affect goods imported from Mexico, Canada, and China. Starting Tuesday, the U.S. will impose a 25% tariff on goods from Mexico and most Canadian imports, and a 10% tariff on Chinese imports.
Both Mexico and Canada have announced their own retaliatory tariffs, with Mexico temporarily holding off on its tariff action after discussions with Trump.
Here are some alcohol companies that could be impacted:
- Diageo (makers of Johnnie Walker and Smirnoff) could see effects as nearly half of its imports come from Mexico and Canada. They also produce tequila in Mexico, a key product shipped to the U.S.
- Pernod Ricard (maker of Absolut Vodka and Jameson Irish Whiskey) has production in Mexico, Canada, and China, with a notable portion of sales coming from those countries.
- Campari (known for Aperol) could face risks, especially in the U.S. tequila market, with production facilities in both Canada and Mexico.
- Anheuser-Busch InBev (owner of Budweiser and Stella Artois) might not be as affected in the U.S. but could see some impact in Mexico, where a large portion of its earnings come from.
- Brown-Forman (maker of Jack Daniel’s) could face tariffs on its tequila sales in Mexico and retaliatory tariffs from Canada and Mexico that could impact its American whiskey sales.
- Constellation Brands (maker of Corona and Modelo beer) faces a larger risk due to its significant production in Mexico, where it gets a large percentage of its sales.
- Molson Coors Beverage and Heineken might experience limited impacts, with the tariffs mainly affecting their operations in Canada and Mexico.
These changes could increase the cost of imported beverages, putting pressure on both companies and consumers, depending on how these businesses adjust to the new tariffs.
