Beverage producer Constellation Brands anticipates aluminium tariffs will impact it by $20 million.
In its latest financial report it also suggested that President Trump’s plans to increase the tax on imported aluminium by 50% was a contributing factor in its underwhelming first quarter results.
Talking to investors Garth Hankinson - Executive Vice President and Chief Financial Officer, at Constellation, said there was uncertainly due to the macro-economic backdrop, fears around GDP growth in the USA as well as the impact of government-related layoffs.
Of the tariffs he stated ‘going forward we think the impact will be roughly $20 million dollars’, he said.
“We don’t think we can fully offset this incremental impact but still believe we can deliver in line with what we outlined in April,” he said
For the period ending May 31, 2025, Constellation had net sales of $2.52 billion, which was lower than an expected $2.55 billion.
In its report it said “Our beer business reported a net sales decrease of 2% driven by a 3.3% decline in shipment volumes reflecting socioeconomic headwinds affecting consumer demand.”