Diageo Warns Trump: Tariff Policies Could Threaten Thousands of U.S. Jobs

Global premium beverage company Diageo has warned U.S. President Trump that proposed import tariffs, particularly on Canadian and Mexican products, could endanger thousands of American jobs. Alden Schacher, Diageo's Vice President of North American Government Relations, stated in a document submitted to the U.S. Trade Representative that the tariffs, set to take effect on April 1, could have adverse effects on the U.S. economy and stressed the importance of free trade in supporting U.S. employment.

Diageo noted that it supports over 178,000 jobs in the U.S., with 11,500 directly involved in production, sales, or distribution. The company operates 11 manufacturing facilities in the U.S., which could be impacted by retaliatory tariffs from the EU, Canada, and Mexico. Additionally, Diageo is planning to build a new facility in Alabama.

Diageo highlighted its significant annual expenditure on materials in the U.S., including oak barrels exported to the UK. North America is Diageo's largest single market, accounting for 40% of its sales and contributing substantial federal alcohol excise taxes.

Schacher argued that protectionism is unnecessary, as the alcohol trade is largely reciprocal and balanced. Diageo suggested that the U.S. should strengthen 'rules of origin' requirements to prioritize products made primarily from U.S. and trade partner materials, closing loopholes that allow 'foreign competitors' to bypass tariffs through strategic partners like Mexico and Canada.

Meanwhile, French Prime Minister Francois Bayrou stated that the EU's plan to reimpose punitive tariffs on U.S. bourbon whiskey might be a misguided decision, noting that the product list was not properly reviewed.

2025-03-17

Source: https://www.thedrinksbusiness.com/2025/03/diageo-warns-trump-proposed-tariffs-could-threaten-thousands-of-american-jobs/