Twelve package of Budweiser is on a shelf for sale in a small store in New York City.
Angeler Druze Gety pictures
The threat of US President Donald Trump to impose a 200 % tariff on alcohol from Europe would serve a major blow to drink makers on the continent, but it can have an unlikely beneficiary – the troubled beer industry.
President Trump said on Thursday that he might target Wine, champagne and other alcoholic drinks From France and other European countries after the European Union moved to re -tax on American whiskey in response to the previous Trump tariff.
قال تريفور ستيرلنغ ، المدير الإداري ومحلل المشروبات الأوروبية في بيرنشتاين ، إن مثل هذه الضريبة ، إذا تم سنها ، يمكن أن “تمحو” جميع الأرباح العالمية لبعض منتجي المشروبات الأوروبية ، تريفور ستيرلنغ ، المدير الإداري ومحلل المشروبات الأوروبية في بيرنشتاين ، يوم الجمعة.
“If I take it with the nominal value, for some producers, they can wipe all their global profits,” Sterling told Squawk Box Europe.
French soulmaker Rémy Cointreau Steling, who derives about a third of its global sales from the United States, said among the worst among the worst, noting that the markets are currently failing in their fully pricing in the impact of the proposed tax.
Wine and spirits companies Burnoud Ricardand Rémy Cointreau and David Campry All of them fell more than 3 % on Thursday, after Trump's comments, with the last two sliding again during Friday's session. LVMH, which has Moët & Chandon and Hennessy from other things, turned shortly for a short period before sliding to red after nine negative sessions.
“The investors may be very little about the possibility of real risks, as this may be a 200 % tariff,” said Sterling. “One has never learned to reduce the Trump administration.”
A blessing for manufacturers
Fees are part of Trump's broader vision to transfer global production to the United States-a strategy that many analysts have been interrogated, especially within the beverages of production and luxury sectors.
“The basic thing when selling distinct lives and wine – CGNAC must be from CGNAC, champagne from champagne, etc.. As a result, it is not a category that the Trump administration will encourage the fusion with it,” wrote Chris Picky, head of the Quilter Cheviot stock research, on Thursday.
However, proposals can provide a blessing for the local beer industry already, which have been under pressure on the last quarters amid low sales and the conversion of consumer habits.
“The beer is not only at the intersection of this.
AB Inb.Tell the largest factory in the world, which has brands including Budweiser, Corona and Stella Artois, CNBC last month that she sees A limited effect of definitions Looking at its high levels of local production.
“We do not believe that we have great topics to discuss this year in terms of customs tariffs,” said CEO Michel Doris.
Heinkin Meanwhile, in February, the CEO of Dolf Van Den BRINK described the proposed American definitions, including the aluminum used in beer cans, to be “relatively manageable”.
“The beer industry is intense in the capital and is very local. Therefore, as such, it is a less likely to disturb international trade flows,” said Squawk Box EUROPE.
