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PRIVACY
Retail & Consumer

Guinness maker warns on impact of Donald Trump's tariffs as it posts recovery

The drinks giant said its business outperformed expectations in the first half of the year, despite the impact of US tariffs

A national shortage was reported in December amid a skyrocketing popularity of the stout - with one in every ten pints pulled in the capital now a Guinness.

Beverage behemoth Diageo has issued a warning about the potential impact of Donald Trump’s tariffs on its business, which exceeded analysts’ expectations this year following a significant downturn last year.

The company's CEO, Debra Crew, stated that US tariffs, "whilst anticipated", could "impact [our] building momentum," and added that these levies have made it difficult for the company to forecast sales, as reported by .

Trump has vowed to impose 25 per cent tariffs on neighbouring Canada and Mexico – although he has since agreed to delay this for 30 days – and has already enforced a 10 per cent tariff on China.

This is particularly relevant for Diageo, one of Mexico’s largest whiskey operators, which manufactures both Don Julio and Casamigos tequila in Mexico for sale in the US.

Crew noted that Diageo has "anticipated and planned for a number of potential scenarios regarding tariffs" and "are taking a number of actions to mitigate the impact and disruption to our business that tariffs may cause".

She further stated: "We will also continue to engage with the US administration on the broader impact that this will have on everyone supporting the US hospitality industry, including consumers, employees, distributors, restaurants, bars and other retail outlets."

US President Donald Trump(Image: Chip Somodevilla/Getty Images)

On Radio 4’s Today show, AJ Bell investment director Russ Mould commented that Diageo’s are "looking at these tariffs very nervously."

He added: "The problem for the market is that they just don’t quite know what to expect".