The lottery of the Trump Tariffs will have an impact on global beer and whisky producers but quite what remains to be understood.
Taking the case of Diageo which produces Johnnie Walker whisky and Guinness, the whisky sold in the US looks like attracting a 10% tax. Guinness is brewed in Dublin and so might get a 20% hit but Diageo is actually listed on the London Stock Exchange so who knows, least of all Trump.
The Sunday Times Business News (6th April 2025) reports that Diageo produces whisky and tequila for the US market in Mexico and Canada where Trump has not imposed tariffs. Diageo expects to make a £350 million profit on that basis, unless of course Trump changes his mind again.
Diaego shares fell ahead of the tariff announcement but the view now seems to be that alcohol sales won’t be hit that much, and where they are it will be EU rather than UK because of the higher tax (Times 3rd April). Not for nothing did Marx describe capitalists as a gang of warring brothers.
However this is Trump world. A recently opened MAGA friendly French style restaurant and bar in Washington, Butterworths, is reportedly getting through 4 kegs of Guinness a day and that might qualify Diageo for a special exemption..
Leave a Reply