Newscasts - Molson Coors forecasts profit drop on aluminum tariff impact

Molson Coors Beverage Co

05/08/2025 18:08

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Source: 'Reuters - Business videos'

Description: Molson Coors forecast a drop in its annual profit on Tuesday, hit by tariff impacts on costs of aluminum it uses for its beverage cans amid macroeconomic uncertainty in the U.S. Lisa Bernhard has more.

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Video Transcript:

Molson Coors said its annual profit will take a hit due to President Donald Trump's tariffs on aluminum imports, which the company uses to make its beer cans. Molson Coors, which produces its beer in Colorado, said on Tuesday it expects costs to rise between $20 million and $35 million in the second half of the year thanks to a tariff-driven increase in the price of aluminum. Tariffs on aluminum shipped into the US have doubled to 50% since June, from the previous 25% duty imposed in March. The steep tariff spike led Molson Coors to lower its annual profit forecast, projecting that annual adjusted earnings per share will likely fall 7% to 10%, compared to its prior forecast of a slight rise. Trump's fluctuating tariff policies have pressured consumer spending, causing customers to pare back on discretionary items such as alcohol. As a result, Molson Coors, which also produces Blue Moon, expects net sales for the year to drop 3% to 4%. The beer maker did, however, beat Wall Street estimates for second quarter results. Shares were up about 1% in midday trading.