Diageo Faces $200M Profit Hit as Trump Tariffs Threaten Key Brands

The spirits giant withdraws sales growth targets, citing geopolitical uncertainty and potential U.S. tariffs on Mexican tequila and Canadian whisky.

Diageo estimates a potential $200 million impact on operating profits if U.S. tariffs on imports from Mexico and Canada are implemented in March.
The company has scrapped its medium-term sales growth target of 5-7%, citing macroeconomic and geopolitical uncertainty, including tariff threats.
Tequila brands like Don Julio and Casamigos, along with Canadian whisky Crown Royal, are most at risk due to their geographic production requirements.
Diageo plans to mitigate the tariff impact through pricing strategies, supply chain adjustments, and inventory management while engaging with the U.S. government.
Despite challenges, Guinness remains a strong performer, delivering double-digit growth for the eighth consecutive half-year.