Diageo Plans $500 Million of Cost Cuts as US Tariffs Kick In (3)

Diageo Plc will cut costs by $500 million over three years as the maker of Johnnie Walker whisky grapples with US trade tariffs.

The British distiller faces additional costs of $150 million annually at current levels set by President Donald Trump’s administration, half of which it can mitigate, Diageo said Monday. Still, higher demand ahead of the tariffs lifted sales in the third quarter, and the company reiterated its full-year guidance.

Shares of Diageo fell as much as 1.6% in London, reversing an earlier gain amid a wider selloff. The stock was down 15% this year through Friday’s close. ...