Diageo returned to growth in the first half of its fiscal year, with strong performances in Guinness and Tequila offsetting weakness in other spirits. This is a solid performance given industry headwinds.

However, Trump’s 25% tariffs on Canadian and Mexican imports have the potential to stop this recovery in its tracks.

The US is Diageo’s largest market. To compound matters, the biggest impact of tariffs would be felt on Tequila, which is the fastest growing part of Diageo’s portfolio.

The scale and breadth of Diageo’s portfolio means it is capable of meeting this challenge head on. It also has scope to accelerate productivity initiatives, which will now become even more important.

However, with Diageo’s CEO, Debra Crew, under mounting pressure to turn things around, the last thing she needed was more uncertainty. Trump’s tariffs cloud the outlook and are a major kick in the teeth for shareholders.