By Arinze Uzo
Business News Correspondent
Global drinks giant Diageo has warned that new US trade tariffs could add up to £113 million in additional costs annually, potentially leading to a rise in prices for its iconic brand Guinness. The company, which owns a portfolio of premium alcoholic beverages, is facing significant financial pressure as ongoing trade tensions between the US and other countries threaten supply chains and increase import costs.
Diageo’s statement highlights the risk posed by the tariffs on its business, especially given the importance of the US market. The tariffs, which have been imposed as part of broader trade disputes, affect the cost of shipping ingredients and finished products. This cost pressure is likely to be passed on to consumers in the form of higher retail prices.
The potential price increase for Guinness could impact both consumers and retailers, as the brand holds a strong presence in bars, restaurants, and retail outlets across the US and internationally. Industry analysts suggest that this development may also affect competitor pricing strategies, potentially reshaping the alcoholic beverage market landscape.
While Diageo continues to explore ways to mitigate these tariff impacts through supply chain adjustments and cost efficiencies, the company’s warning underscores the broader economic risks posed by trade disputes. For consumers, this could mean paying more for their favorite stout in the near future.
