Guinness Parent Company Fears Hundreds of Millions in Costs Due to Tariffs

The British beverage company Diageo, behind brands such as Guinness, Johnnie Walker, and Smirnoff, expects that US import tariffs will cost the company approximately $150 million (around €134 million) per year. Diageo reported this in its quarterly results.

The world's largest beverage company assumes the tariffs will remain unchanged. Diageo expects tariffs on goods from the UK and EU to stay at 10%, while spirits from Mexico and Canada can enter the US tariff-free.

Diageo believes it can mitigate the impact of the $150 million through cost savings. The company aims to save $500 million over the next three years, partly by implementing simplifications. The company maintains its expectations for the entire fiscal year. In February, Diageo withdrew its growth forecast.

Earlier this year, Guinness already faced significant supply issues. There were major shortages of the dark beer due to a popular trend on social media, leaving some pubs with limited supplies and no ability to stockpile.