Diageo backs ‘made in U.S’ rules over tariffs

Guinness owners Diageo
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Diageo has called upon the US government to consider using stricter “rules of origin” in trade deals instead of adding new tariffs.

In a letter addressed to the U.S. Trade Representative, the spirits giant said that new rules of origin for the US could support its aims and benefit the industry, reported Reuters.

The proposed update to the rules would mean alcohol and other products would only get trade benefits if most of their ingredients and parts come from the US or close trade partners such as Mexico or Canada.

Diageo’s suggestion includes ensuring that grains or plants used in making of alcohol come from the US or a trade partner, that the alcohol is distilled in one of those places, and even that the barrels used for aging are from the same regions.


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It is understood that the US currently dodges the protected geographical origin rules placed on European products, such as champagne originating from a particular region of France.

Diageo has a portfolio that includes Scotch whiskey brands such as Johnnie Walker, J&B, and Buchanan’s, and tequila brands Don Julio and Casamigos. It its proposals were aimed at strengthening US supply chains, stopping foreign countries from avoiding tariffs by using US partners, and supporting American economic goals.

It is not the first time Diageo has spoken out against the trade war. In February, the alcohol manufacturer warned that potential tariffs could disrupt key categories and have a knock-on effect on its wider global business —especially for tequila, which has been a major growth driver, accounting for 12% of Diageo’s volume in the US spirits market.

Earlier this week, Trump threatened to impose 200% tariffs on alcohol, including wine and champagne. His announcement sent shares down among leading European drink giants, with Pernod Ricard slipping by almost 4%, Rémy Cointreau falling 3.5% and LVMH dipping by 1.4%.

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1 Comment. Leave new

  • Neil 1 year ago

    They’ll have to slap a Guinness Brewery Annexe on the other side of the CBP U.S. Preclearance (USCBP) facility at Terminal 2 – the US Border at Dublin Airport T2 to make American Irish Guinness.

    Reply

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Diageo backs ‘made in U.S’ rules over tariffs

Guinness owners Diageo

Diageo has called upon the US government to consider using stricter “rules of origin” in trade deals instead of adding new tariffs.

In a letter addressed to the U.S. Trade Representative, the spirits giant said that new rules of origin for the US could support its aims and benefit the industry, reported Reuters.

The proposed update to the rules would mean alcohol and other products would only get trade benefits if most of their ingredients and parts come from the US or close trade partners such as Mexico or Canada.

Diageo’s suggestion includes ensuring that grains or plants used in making of alcohol come from the US or a trade partner, that the alcohol is distilled in one of those places, and even that the barrels used for aging are from the same regions.


Subscribe to Grocery Gazette for free

Sign up here to get the latest grocery and food news each morning


It is understood that the US currently dodges the protected geographical origin rules placed on European products, such as champagne originating from a particular region of France.

Diageo has a portfolio that includes Scotch whiskey brands such as Johnnie Walker, J&B, and Buchanan’s, and tequila brands Don Julio and Casamigos. It its proposals were aimed at strengthening US supply chains, stopping foreign countries from avoiding tariffs by using US partners, and supporting American economic goals.

It is not the first time Diageo has spoken out against the trade war. In February, the alcohol manufacturer warned that potential tariffs could disrupt key categories and have a knock-on effect on its wider global business —especially for tequila, which has been a major growth driver, accounting for 12% of Diageo’s volume in the US spirits market.

Earlier this week, Trump threatened to impose 200% tariffs on alcohol, including wine and champagne. His announcement sent shares down among leading European drink giants, with Pernod Ricard slipping by almost 4%, Rémy Cointreau falling 3.5% and LVMH dipping by 1.4%.

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1 Comment. Leave new

  • Neil 1 year ago

    They’ll have to slap a Guinness Brewery Annexe on the other side of the CBP U.S. Preclearance (USCBP) facility at Terminal 2 – the US Border at Dublin Airport T2 to make American Irish Guinness.

    Reply

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Fill out this field
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