Trump tariff war set to make Guinness over 6 a pint - London Business News | Londonlovesbusiness.com
Briefly

As St. Patrick's Day approaches, Guinness drinkers face a potential 10% price hike on pints amidst tariff uncertainties affecting profits. Diageo's financial chief, Nik Jhangiani, indicated that U.S. tariffs on Mexico and Canada might reduce operating profit by approximately $200 million. Currently, the average pint price in the UK is £4.48, projected to reach nearly £5 after the increase. Macro strategist John J. Hardy stressed that tariffs are often used as leverage rather than long-term policies, highlighting the ongoing uncertainty regarding actual tariff impacts after the upcoming deadlines.
A 10% increase is a reasonable baseline estimate for tariffs on European imports, but tariffs are chiefly used as a threat to prompt policy moves.
Diageo's warning is the company's effort to create an insurance policy while they wait to assess the damage caused by Trump's tariffs.
Read at London Business News | Londonlovesbusiness.com
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