Simply put, any policy proposal which drives up costs of Corona, tequila, or margaritas is a big-time bad idea. Mucho Sad. (2)
— Lindsey Graham (@LindseyGrahamSC) January 26, 2017
Americans do drink a ton of Mexican beer and tequila each year. In fact, according to the industry group BW166, Mexican products account for almost a quarter of the imported alcohol Americans drink.
Mexican beer sales, led by brands such as Corona, Tecate and Dos Equis, made up 8 percent of all the beer sold in the United States in early 2015, according to Nielsen. That's more than craft beers. And U.S. sales of tequila and mezcal, which are made exclusively in Mexico, rose 45 percent between 2010 and 2015, according to Euromonitor.
A tariff could really hurt sales of tequila and Mexican beer — a possibility investors have feared ever since Trump won the election. On Nov. 9, shares of Constellation Brands — the Victor, N.Y.-based owner of Corona, Negra Modelo and Pacifico, among others — plunged 8 percent over concerns that Trump might disrupt trade with Mexico. The company suffered another 7 percent drop on Jan. 5 as the president launched a very public battle with Toyota over its opening of a Mexican plant.
As of 4 p.m. Thursday, Constellation’s shares had fallen 2.67 percent from Wednesday’s close.