Diageo is one of the world’s largest alcoholic beverage companies. It has its headquarters in London, the United Kingdom, and is known for producing and marketing a wide variety of liquors, beers and wines. Its portfolio includes global brands such as Johnnie Walker, Smirnoff, Guinne
The US president announced the weekend that he would apply 25% tariffs to products from Mexico and Canada, and 10% to those from China. However, eL Monday decided to postpone the measure for 30 days for neighboring countries.
Nik Jhangiani, financial director of Diageo, said the company expects a reduction of 200 million dollars in its operational profits in the fiscal year ending on June 30 if the tariffs enter into force on March 1.
This projection is one of the first to a global company in the framework of the season of results of the fourth quarter, where executives from various industries try to adapt to changes in the US trade policy. UU. Threatening key sectors such as The automaker, consumer and energy goods.
On Tuesday, China responded with specific tariffs on US imports and warned several companies, including Google, about possible sanctions.
Commercial tensions
For companies that depend on international trade, any tariff on imported products from its main commercial partners represents a new obstacle in a context of demand weakening, especially in China, and increasing costs in labor and raw materials.
Although Jhangiani said that Diageo has plans to reduce the impact of tariffs, the company’s CEO, Debra Crew, warned that its initial analysis does not contemplate possible reprisals.
“Today, we believe we could compensate approximately 40% of those 200 million dollars before taking measures on prices,” Jhangiani explained to the media, after the company withdraw its sales growth projections.
Diageo, world leader in spirits, obtains about 45% of its income in the US, its most important market, with products such as Tequila Don Julio and Canadian whiskey Crown Royal, whose production depends on Mexico and Canada.
Their actions retreated 2.4% and touched their lowest level since March 2020 in the opening of European markets, also dragging competitors such as Campari and Pernod Ricard.
For its part, ZF, which exports auto parts from Mexico to the US, warned Monday that it will have no alternative to transfer part of the cost of tariffs to consumers through price increases.
The financial impact of these measures will be “dramatic and immediate” for US car manufacturers. And for those operating in Mexico and Canada destined for the US market, said Sam Fioreni, vice president of AutoForecast Solutions.
In a context of growing uncertainty, the DSV logistics company warned Tuesday that Trump’s tariffs could slow the demand, affecting their profits throughout the year.
Source: Ambito
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