Ever wondered how geopolitics can affect your beer budget? Let's dive into the recent buzz around Constellation Brands andDonald Trump's tariff proposals. When Trump hints at slapping a 25% tariff on Mexican imports, it sends ripples through the beer market. Why? Well, Constellation Brands brings in all its beer – including favorites like Modelo and Corona – from Mexico.

If this tariff takes effect, it could boost Constellation Brands' costs by about 16%, according to experts. What does this mean for you? Most likely, the brewer will bump up prices. But don't worry, you're not alone – even shares are feeling the pinch, with a 4% drop this year.

Moving beer production out of Mexico? Not so fast. A complex deal from 2013 between Anheuser-Busch InBev, Grupo Modelo, and the DOJ requires that Constellation keep making those beers where AB InBev does. Besides, Constellation has poured billions into expanding Mexican production.

Remember Trump's 5% tariff on Mexican imports right before the election? It never happened. So, who knows if these new threats will stick? It's a wait-and-see game. Meanwhile, auto companies like General Motors and Stellantis are also on edge.

But here's a thought: how does all this affect the worker in Mexico who brews your favorite beer? It's a complex web, and changing one thread can lead to a different pattern. Keep an eye on the trade talks and your local brewery – they might have some surprises up their sleeve.

Mexican Beer Gets Pricier? Trump's Tariff Threats Explained

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