Potential Tariff Impact on Leading Alcohol Brands like Johnnie Walker and Corona Beer

On February 4, Reuters reported that producers of alcoholic beverages such as Johnnie Walker whisky and Corona beer might face challenges due to potential trade conflicts involving new tariffs on goods from Mexico, Canada, and China.

President Trump initially agreed on Monday to withhold imposing tariffs but proceeded with a 10% levy on Chinese imports the following day, triggering tit-for-tat tariffs.

Concerns are mounting among global beverage companies like Diageo and Pernod Ricard SA, which are bracing for financial impacts. Diageo, for example, anticipates a gross profit reduction of around $200 million for the current financial year due to potential tariffs on its tequila products originating in Mexico. On the other hand, companies like AB InBev and Brown-Forman face uncertainties regarding the impact of tariffs on their products sourced from Mexico, Canada, and the U.S.

Overall, the industry is closely monitoring the situation to assess the potential disruptions and adjustments needed to navigate through the evolving trade landscape.