To navigate these challenges, Crew appointed Nik Jhangiani as the new finance chief, bringing valuable experience from Coca-Cola Enterprises.

These tariffs, implemented following an announcement by President Donald Trump, are impacting Diageo's profit margins and prompting the company to adopt cost-cutting measures.

The company believes that its current strategies will help mitigate about half of the tariff's impact on profits, while also exploring alternative markets to offset costs.

Diageo's shares rose by 2.6% in early trading on May 19, 2025, but have seen a decline of about 13% since January due to ongoing tariff uncertainties.

For the quarter ending March 31, 2025, Diageo reported a 2.9% increase in net sales, totaling $4.37 billion, largely attributed to strong sales of Guinness.

The company's cost-cutting efforts may involve streamlining production processes and reducing overhead costs to maintain competitive pricing in the U.S. market.

The company has also confirmed that it will not be affected by tariffs related to trade between the U.S. and China, which may provide some relief.

Diageo, the maker of iconic brands like Guinness and Smirnoff, is facing significant financial challenges due to new U.S. trade tariffs, which are expected to cost the company approximately $150 million annually.

Despite these challenges, CEO Debra Crew expressed confidence in the company's long-term prospects, highlighting a positive outlook for organic net sales growth in the second half of fiscal 2025.

In North America, Diageo reported a 5.9% increase in sales, driven by strong shipments of U.S. spirits, which contrasts with a decline in European sales.

Sales in Europe fell by 1.3%, as increased demand for Guinness could not fully offset declines in spirits sales across key markets.

In response to these financial pressures, Diageo has launched a $500 million cost-saving initiative aimed at enhancing cash flow and operational efficiency over the next three years.