Trade Turmoil: Companies Brace for U.S. Tariff Impact

Diageo and other global companies face potential profit hits due to U.S. tariffs on imports from Mexico, Canada, and other regions. As companies strategize to mitigate impacts, global markets react negatively. CEOs are planning responses amid uncertain trade policies, which could lead to broader economic disruptions.


Devdiscourse News Desk | Updated: 04-02-2025 18:58 IST | Created: 04-02-2025 18:58 IST
Trade Turmoil: Companies Brace for U.S. Tariff Impact
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Diageo, a leading name in the spirits industry, has issued a warning of a $200 million dent in its operating profits due to U.S. tariffs on imported goods from Mexico and Canada. These tariffs, proposed by U.S. President Trump, threaten to shake various industries worldwide, from energy to consumer products.

Trump's tariff plan, which initially included a 25% levy on goods from Mexico and Canada with a brief concession of a 30-day delay, aims to address trade imbalances but has incited retaliatory measures. Onlookers, including major corporations, are concerned over the escalating trade tensions, complicating the business landscape further.

As global markets falter in response, financial strategists like Diageo's Nik Jhangiani and other industry leaders convey readiness to cushion the economic blow. However, a prolonged tariff war carries the risk of inflation and greater economic instability, which international trade experts warn could have severe repercussions globally.

(With inputs from agencies.)

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