Diageo Falls 4.74% as Trade Tariffs Spark Jitters, Trading Volume Ranks 476th

On July 31, 2025, Diageo (DEO) fell 4.74% with a trading volume of $0.30 billion, ranking 476th in market activity. The decline followed developments in U.S.-EU trade negotiations, which indicated a 15% baseline tariff on European spirits and wine exports to the U.S. from Friday. European Commission spokesperson Olof Gill confirmed no immediate exemption for these categories, creating uncertainty for companies like Diageo, which faces a 5% exposure to U.S. sales of its spirits under the proposed framework.

The company also announced Deirdre Mahlan’s return as interim CFO, a role she previously held in the 2010s. Mahlan’s appointment comes amid a leadership transition following Debra Crew’s brief tenure as CEO, during which Diageo’s stock performance weakened. This internal restructuring coincides with external pressures from evolving trade dynamics and a competitive spirits market.

Strategic reviews are underway, with Diageo appointing Bank of America and Goldman Sachs to assess its East African beer business. The move signals a potential pivot in its global portfolio, though no concrete decisions have been disclosed. Meanwhile, Bernstein’s analysis highlighted Diageo’s relatively modest U.S. exposure compared to peers, with the firm’s U.S. sales accounting for 5% of its net revenue from EU-origin spirits.

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