Trump’s 200% tariffs may have a unlikely winner – beer brewers

US President Donald Trump’s threat to impose 200% of the tariffs for alcohol from Europe served as a major blow to drink producers on the continent, but it may have one unlikely beneficiary – the fight against the beer industry.

President Trump said on Thursday that could target wine, champagne and other alcoholic beverages From France and other European countries after the European Union has moved to resume import tax on US whiskey in response to earlier tariffs on Trump.

Such a gathering, if you participate, can “literally destroy” all world profits for some producers of European beverages, Styrling, director and European analyst Beveges in Bernstein said on Friday.

“If you take it for the denomination, for some producers it can literally destroy all their world profits,” said Styrling “Squawk Box Europe”.

French perfume manufacturer Remim of countere -This comes about a third of its world sales in the United States will probably be one of the worst victims, “said Styrling, noting that the markets will not be fully fully the price as a result of the tax offered.

Wines and alcohol Penod Ricard. Remim of countere and Davide Campari All on Thursday decreased by more than 3% after Trump’s comments, and the last two slide again during the session on Friday. LVMH, which owns Moët & Chandon and Henness, among others, briefly turned into a positive Friday before slipping back into red after nine negative sessions.

“Investors may be a little too blushed about the potential that there is a real risk that it can be a 200% tariff,” Styrling said, acknowledging that the rate was unusually high compared to those concerning other countries and sectors. “One has learned to never underestimate the Trump administration.”

The levies are part of the broader vision of Trump to transfer global production to the US-strategy, which many analysts call into question, especially within the production of drinks and luxury sectors.

“The origin is important when selling premium drinks and wine – cognac, champagne from champagne, etc. As a result, this is not a category that the Trump administration will encourage wrapping,” the Trump administration wrote on Thursday.

However, offers can provide good for the already highly localized beer industry, which is under pressure in the last quarters against the background of reducing sales and changes in consumer habits.

“Beer is just not at the intersection of this. Beer now looks like an island stability,” said Styrling “Squawk Box Europe”.

AB INB.The world’s largest brewer who owns brands, including Budweiser, Corona and Stella Artois, said CNBC last month that sees what sees what sees what sees Limited influence from tariffs Given the high level of domestic production.

“We do not believe that this year we will have big topics in terms of tariffs,” said Michel Duris CEO.

Heineken Meanwhile, CEO Dolph van Dan Brink described the proposed tariffs in the US in February, including aluminum form used in beer tins to be “relatively controlled”.

“The beer industry is intense and very local. So, it is like this, it is a industry that is a little less sensitive to the disruption of international trade flows,” he said last month, “Squawk Box Europe”.