Constellation Brands likely to suffer most from new trade measure
The Trump administration will impose a 25% tariff on all imported canned beer and empty aluminum cans starting Friday, according to a notice issued by the U.S. Department of Commerce. The announcement precedes a broader unveiling of tariffs scheduled for 4 p.m. ET during a Rose Garden event hosted by President Donald Trump.
The decision marks a significant escalation in the administration’s aluminum trade policy, with major implications for the U.S. beverage industry. Analysts say the move will especially impact Constellation Brands, which imports all its beer from Mexico. Constellation owns the Modelo and Corona brands, with beer comprising 82% of its quarterly sales.
While Corona is more commonly associated with glass bottles, Modelo — the bestselling beer in the U.S. — is primarily sold in aluminum cans. Shares of Constellation fell slightly on Wednesday afternoon, though the company’s stock is already down 22% since Trump’s election in November.
Aluminum can market dominance under pressure
The updated Commerce Department notice makes no mention of tariffs on beer packaged in glass bottles. However, the focus on aluminum is likely to have widespread effects: aluminum cans accounted for 64.1% of beer distribution in 2023, compared to just 26.9% for glass bottles, according to the Beer Institute.
Canned beer has steadily gained market share over the years due to its lighter weight and lower transportation costs, making it a more affordable option for both producers and consumers. This tariff could reverse that trend by raising prices across the board.
U.S. targets key trade partners
The U.S. imports the majority of its aluminum from Canada, though China and Mexico—both frequent targets of Trump’s trade agenda—are also major suppliers. The new tariff will likely further strain trade relations with these countries and increase costs for American breweries and consumers.
The beer and beverage industry is bracing for disruptions in the wake of this decision, with trade groups expected to issue formal responses in the coming days.
