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Trump’s 200% of tariffs could have a unlikely winner – beer


Twelve Budweiser packages sitting on a sale shelf at a New York store.

Drew Angerer | Getty Images

The threat of US President Donald Trump to impose 200% of Taripa on alcohol from Europe would serve a big blow to the continent manufacturers, but that could have one unlikely user – the beer industry that fights.

President Trump said on Thursday that he could target wine, champagne and other alcoholic beverages From France and other European countries after the European Union has switched to the return of imports of imports to American whiskey in response to the previous Tariff Trump.

Such a levy, if brought, could “literally delete” all the global profit for some European drink producers, Trevor Stirling, Director General and European Analyst in Bernstein said on Friday.

“If you take it at a nominal value, for some of the manufacturers, it could literally erase all their global profit,” Stirling told CNBC “Squawk Box Europe”.

French ghost manufacturer Rémy Cointreau -How gets about one-third of its global sales from the US, it would probably be among the worst-affected, ”Stirling said, noting that markets are currently failing to completely prices in the influence of the proposed tax.

Wine and ghost companies Pernod Ricard,, Rémy Cointreau and Davide Campari They all fell more than 3% on Thursday, after Trump’s comments, with the last two sliding during Friday. LVMH, which, among others, owns Moët & Channes and Hennessy, briefly turned positively on Friday before slipping into red after nine negative sessions.

“Investors may be a little too blessed because of the potential that there is a real risk that it could be a 200%tariff,” Stirling said, acknowledging that the rate was unusually high compared to those even against other countries and sectors. “One learned to never underestimate Trump’s administration.”

Booon for breweries

The fees make up part of Trump’s wider vision for the relocation of global production in the US-strategy that many analysts have examined, especially in production drinks and luxury sectors.

“The implementation is important when selling top alcoholic beverages and wine – the cognac must be from cognac, champagne from champagne, etc.

However, the proposals could provide a blessing for the already highly localized beer industry, which has been under pressure lately due to the fall of sales and switching of consumer habits.

“Beer is simply not in the intersection of this. The beer looks like an island of stability right now,” Stirling said “Squawk Box Europe”.

Ab ubevThe world’s largest brewer, which owns brands, including Budweiser, Corona and Stella Artois, told CNBC last month to see Limited influence with tariff Given the high level of domestic production.

“We do not think we will have big topics that we will discuss this year in terms of tariff,” said Michel Doukeris CEO.

Heineken Meanwhile, Dolf Van Den Brink CEO described the proposed US tariffs in February, including aluminum used in beer cans, to be “relatively administrative”.

“The beer industry is capital intense and is very local. So, as such, it is an industry that is slightly less subject to disorders in international trade streams,” Squawk Box Europe said last month.



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