Guinness producer Diageo preparing for €133 million hit from US tariffs

Diageo, manufacturers of Guinness, are preparing for a €113 million hit, assuming that the current 10% tariff remains on both UK and European imports into the US.

President Trump announced that the baseline tariffs of 10% took effect on April 2nd 2025, including imports from Ireland.

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In the fiscal statement Diageo writes that:

"The unmitigated impact of these tariffs is estimated to be c.$150m on an annualised basis. We expect that given the actions that we have in place already, before any pricing, we will be able to mitigate around half of this impact on operating profit on an ongoing basis. Looking ahead, we will continue to work on measures to mitigate this impact further. Our long track record of managing international tariffs gives us confidence in our ability to navigate this successfully. "

Debra Crew, the Chief Executive of Diageo has said that:

"In the third quarter we delivered strong organic net sales growth and are on track to deliver on our guidance of sequential improvement in organic net sales performance in the second half of fiscal 2025.

We also reiterated our organic operating profit outlook for fiscal 2025, including the impact of tariffs based on what we know at this time.

We continue to believe in the attractive long-term fundamentals of our industry and in our ability to outperform the market."