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Constellation Plunges as Mexico Trade War Threatens Modelo

Two-thirds of revenue is from beer, much of it made in Mexico
A tariff increase to 25% could pose sales risks, analyst says

Video player cover image — How Global Trade Tensions Will Spill Over Onto Your Dinner Plate

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May 31, 2019, 1:53 PM UTCUpdated onMay 31, 2019, 2:51 PM UTC

Modelo and Corona are now in the trade war’s cross hairs, and that’s bad news for Constellation Brands Inc.

The alcohol giant’s shares plunged on Friday after U.S. President Donald Trump threatened to put tariffs of as much of 25% on goods coming across the border from Mexico. That would include the beer and tequila brands produced by Constellation, which has gotten a boost in recent years from the rising popularity of Modelo in the U.S.