Constellation Brands’ stock declines as Trump tariff plans threaten to make Modelo and Corona more expensive

Constellation Brands shares plummeted 4% in morning trading on President-elect Donald Trump’s announcement of a 25% tariff on Mexican imports upon inauguration.

Constellation imports all of its beers from Mexico, including Modelo and Corona. Beer accounted for 86% of Constellation’s revenue in the first half of the fiscal year.

Constellation shares have declined 4% this year, including Tuesday’s dip. The brewery has a market capitalization of $43.88 billion.

If enacted, Trump’s planned tax would increase Constellation Brands’ cost of goods sold by around 16%, according to a research note published on Tuesday by Wells Fargo Securities analyst Chris Carey.