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Tariffs and Alcoholic Beverage Makers
Analysis of the potential impact of a Republican US election victory on three major alcoholic beverage companies due to possible trade tariffs.
English
United States
PoliticsEconomyUs PoliticsLabour MarketTradeTariffsAlcohol
Brown-FormanConstellation BrandsDiageoToronto-Dominion BankEuropean Union
Donald TrumpRobert Moskow
- What is the history and future outlook for EU tariffs on American whiskey?
- The EU's retaliatory tariffs on American whiskey were relaxed in early 2022 but are expected to be reinstated and doubled by 2025, significantly affecting Brown-Forman.
- What challenges does Constellation Brands face concerning potential tariffs?
- Diageo, with significant US sales, also faces risks from tariffs impacting multiple business areas. They might pass some costs to consumers, but this could negatively affect sales given the spirits market's weakness.
- What is the biggest risk Brown-Forman faces from a potential Republican victory?
- Brown-Forman faces the highest risk from reinstated EU tariffs on American whiskey, potentially reaching 50% in 2025. Constellation Brands, producing in Mexico, could be challenged by tariffs on Mexican goods, though some offsets exist from US sourcing and peso devaluation.
- How might Diageo be affected by potential tariffs, and what strategies could they employ?
- Constellation Brands' reliance on US farmers for some ingredients might partially mitigate the impact of tariffs on Mexican goods, but supply chain disruption and margin pressure are likely.
- How might a Republican victory in the US election impact global alcoholic beverage makers?
- A Republican victory in the US election could negatively impact three global alcoholic beverage makers: Brown-Forman (Jack Daniel's), Constellation Brands (Corona), and Diageo (Guinness), primarily due to potential trade tariffs.