1459 ET - A 25% tariff on imports from Mexico could be a real headwind for aluminum-can maker Ball, Jefferies analysts say in a research note. For starters, tariffs would drive aluminum prices higher, though the analysts note that Ball could circumvent this cost as it's contractually able to pass it to customers. "The bigger risk is demand destruction, with consumers already dealing with a significant amount of inflation," they write. Ball additionally manufactures beer cans for Constellation Brands in Mexico, as the brewers' Modelo, Corona and Pacifico beers must be made in the country to be considered authentic. Shares of Constellation Brands and Ball fall 2.3% and 0.4%, respectively. (connor.hart@wsj.com)
(END) Dow Jones Newswires
February 03, 2025 14:59 ET (19:59 GMT)
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