Diageo, maker of Guinness, Smirnoff vodka and Johnnie Walker whiskey, has said Donald Trump’s tariffs on wine and spirits will reduce its profits by €173m (£150m).
The world’s biggest spirits maker is the latest company in the EU to reveal the high cost of the US president’s new tariff trade wars.
On Tuesday it forecast flat 2026 sales, raised its estimate of the impact from tariffs, and hiked its cost-savings target by about €108m.
The EU had hoped wines and spirits would remain duty free after Trump and European Commission president sealed the tariff deal at Trump’s Scottish golf course eight days ago but negotiations are ongoing.
Sources say talks on spirits are more advanced than for wine.
At least one person died, and 12 were injured after another round of Russian attacks on Ukraine overnight, with Ukrainian president Volodymyr Zelenskyy accusing Russia of trying to “intimidate frontline cities and communities” by attacking civilian targets.
Zelenskyy’s most senior aide, Andriy Yermak, was more blunt:
“Their war is with the civilian railway, trains, residential buildings. Ukraine strikes at military targets, Russia – whatever it can reach.”
But responding to the attacks, Zelenskyy once again called on the US and the EU to turn up the pressure on Russia by fast-tracking much-promised sanctions and secondary sanctions on countries supporting its war.
“The world is now seeing that sanctions against Russia and secondary sanctions against all those who help it profit from oil can work if they are strong enough. So the pressure must be increased, and it will certainly work for peace,” he said.
His comments come a day before US special envoy Steve Witkoff is expected in Moscow for another round of high-level talks with Russia, possibly with President Vladimir Putin.
Elsewhere, I will be looking at the latest from the European Commission on the EU-US tariff deal, and will bring you all other key updates from across Europe here.
It’s Tuesday, 5 August 2025, it’s Jakub Krupa here, and this is Europe Live.
Good morning.
