• 7 hours How To Spy On Yourself: The Doorbell To End Civil Liberties
  • 2 days Analyst Predicts Tesla Stock Will Soar To $500
  • 3 days Australian Billionaire To Invest In $88 Million Struggling Solar Project
  • 3 days Twitter-Shaming: The Biggest Threat To Any Business
  • 3 days Canada Looks To Become A Major Source For Critical Minerals
  • 4 days Hedge Funds Are Piling Into This Key Commodity
  • 6 days Trade Deal Not Likely Before Christmas 2020
  • 6 days America's $16 Trillion Debt Bubble Is About To Burst
  • 6 days Black Friday Breaks Online Shopping Records
  • 7 days Tesla's Biggest Competitor Is Hiding In Plain Sight
  • 7 days Are Celebrities Good Or Bad For Cannabis Stocks?
  • 9 days Venezuela’s Crisis Continues As Maduro Spends $5 Billion On Oil Deals
  • 10 days Elon Musk Claims 250,000 Orders For Cybertruck
  • 10 days How To Survive Thanksgiving Politics With Cannabis Gravy
  • 12 days The Fragility Of Monetary Policy
  • 12 days 5 Oligopoly Stock Picks For Your 2020 Portfolio
  • 13 days $7 Trillion In Unfunded U.S. Pensions As Domestic Debt Hits A Record High
  • 13 days Retail Is Alive And Well, But Only For The Rich
  • 13 days New Tech Could Unchain The Solar Revolution
  • 14 days China's Boldest Move Yet To Ditch The U.S. Dollar
Analysts Link Walking To Economic Growth

Analysts Link Walking To Economic Growth

Overall, those health gains translate…

The Free Money Bubble Is About To Burst

The Free Money Bubble Is About To Burst

Globally, central bankers have cut…

  1. Home
  2. Markets
  3. Economy

Mexican Tariffs Could Cause Corona And Modelo Beer Prices To Spike

Broken Corona bottle

Last Thursday, President Trump tweeted he would impose a 5% tariff on all goods coming from Mexico starting next Monday [June 10] "until such time as illegal migrants coming through Mexico, and into our Country, STOP." The tariff, if authorized by the White House, could make popular Mexican beer like Corona and Modelo, a whole lot more expensive for American consumers, reported CNBC.

Trump tweeted: ''On June 10th, the United States will impose a 5% Tariff on all goods coming into our Country from Mexico, until such time as illegal migrants coming through Mexico, and into our Country, STOP. The Tariff will gradually increase until the Illegal Immigration problem is remedied,..''
 
A statement published by the White House said tariffs on Mexican imports would surge to 25% if the immigration crisis at the border is not resolved immediately.

A senior Mexican delegation will start high-level immigration talks on Monday in Washington to hopefully resolve the issue and thwart tariffs.

The announcement of possible duties gaped down Constellation Brands' stock 8% at one point last Friday.

According to Morgan Stanley, 75% of Constellation Brand's beer portfolio is "entirely imported" from Mexico. MS said in a research note to investors that a 5% tariff would cut 4% rom the company's bottom line. In the case of a 25% tariff rate, well, the company's profits would collapse by 19%.

Jim McGreevy, president and CEO of the Beer Institute, spoke with the Chicago Tribune who said tariffs on Mexico would harm the American trucking industry and farmers along the supply chain if Mexican brewers see a decline in activity. US farmers exported $209 million in barley to Mexican beer producers last year, McGreevy said.

It's likely that the importer on record will pass along the tariff in the form of higher prices to consumers. The beer industry has already been slapped with $349 million in additional costs thanks to President Trump's steel and aluminum tariffs.

Chicago-based MillerCoors, which imports the Mexican beer Sol, would be another beer to see possible price hikes if the tariffs went through next week. Heineken, which imports Dos Equis and Tecate, are more beers that could see price hikes. Anheuser Busch InBev, which imports Mexican beer Estrella Jalisco, could also see increased prices.

To "Make America Great Again," consumers will have to pay up for their favorite Mexican beers - at what point does the blue collar worker, living paycheck to paycheck, start noticing soaring prices thanks to President Trump's trade war?

By Zerohedge.com

More Top Reads From Safehaven.com:

Back to homepage

Leave a comment

Leave a comment