Key Takeaways

Among the companies feeling the impact of President Donald Trump's tariffs announced over the weekend is alcoholic beverage giant Constellation Brands ( STZ ).

Shares of the firm that imports Modelo and Corona beers from Mexico fell 4% Monday morning after the White House imposed a 25% tariff on imports from that country and Canada, and a 10% tariff on products from China.

The potential impact of the sanctions led Piper Sandler to downgrade the stock to "neutral" from "overweight," and slash the price target to $200 from $245, according to reports.

Mexican beer sales have been a big driver of Constellation Brands' recent results. Its Modelo Especial overtook Anheuser-Busch InBev's ( BUD ) Bud Light as the U.S.'s best-selling beer in 2023 following a boycott over the latter's relationship with transgender social media influencer Dylan Mulvaney.

Last month, Constellation Brands reported a 3% year-over-year rise in beer sales in its fiscal 2025 third-quarter results, but wine and spirits revenue slumped 14%. It also lowered its full-year outlook, warning that it sees more "normalized spending" by consumers in the future.

Constellation Brands shares sank to their lowest level in more than four years.

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