Scotch Whisky Giant Issues Sales Warning Amid Trump Trade War Fears
Diageo warns of sales impact due to potential US tariffs and trade tensions
Scotch Whisky,
Diageo,
Johnnie Walker,
US Tariffs,
Donald Trump,
Scotland,
Canada,
Mexico
London: A big Scotch whisky producer is worried about sales. Diageo, known for Johnnie Walker, has dropped a key sales target. They’re concerned about US tariffs and changing consumer demand.
Diageo is a major employer in Scotland. They’re talking with the Trump Administration about tariffs that could hurt their sales. Recently, tariffs were confirmed but delayed for a month, making it hard for them to predict future sales.
The company thinks its tequila and Canadian whisky brands will be hit the hardest. They also reported a slight drop in net sales, down 0.6% to £8.8 billion for the last six months.
John Swinney, a Scottish leader, hopes to use Trump’s love for Scotland to avoid tariffs on Scotch whisky. He discussed the importance of trade with Trump last month.
Trump recently paused tariffs on Mexico and Canada after negotiations. However, he still plans to impose tariffs on goods from these countries and China. It’s unclear if he will follow through after the 30-day pause.
This uncertainty makes businesses cautious. They might hold off on investing or hiring until the trade situation is clearer.