Johnnie Walker owner Diageo says Trump tariffs could hit profits by $150m [View all]
Source: The Guardian
Mon 19 May 2025 04.02 EDT
Last modified on Mon 19 May 2025 04.27 EDT
Diageo, the drinks business behind Guinness and Johnnie Walker whisky, has said Donald Trump’s tariffs could hit its profits by $150m (£112m) each year, although it expects to be able to cushion about half of the expected blow.
The FTSE 100 group, which sells alcoholic drinks including tequila, gin and whisky, is one of the many businesses that have been hit by Trump’s 10% tariff on UK and European imports.
The company said in an update on Monday that its “long track record of managing international tariffs” gave it confidence to navigate the new regime successfully. It came alongside a pledge to cut costs by about $500m over the next three years, as part of a wider programme designed to improve its efficiency.
In February the company estimated that new trade restrictions could lead to a $200m reduction in operating profit over the last four months of its financial year to the end of June. But plans to cut costs raises the prospect for job cuts at the business, which operates in 180 countries and employs more than 30,000 people around the world.
Read more: https://www.theguardian.com/business/2025/may/19/johnnie-walker-diageo-trump-tariffs-profit-ftse-100-guinness
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