The cost of a pint of Guinness could be set to rise after drinks giant Diageo warned it faces a hefty £113million-a-year bill due to fresh US trade tariffs imposed by Donald Trump.

The London-listed firm, which also produces Johnnie Walker whisky, Gordon's gin and Baileys, revealed the expected hit as it unveiled a sweeping £375.6million cost-cutting drive.

Diageo said it will be stung by a 10 percent tariff on UK and European imports into the United States, brought in last month as part of a wave of levies launched by the former President.

Bosses at the company admitted the blow will likely cost them £113million a year, though they are confident that current mitigation plans will absorb around half of the impact.

It marks a more optimistic outlook than earlier this year, when Diageo had braced for a potential £161million dent to profits due to the tariffs.

The company had been preparing for a major knock from proposed charges on US imports from Canada and Mexico but was given a welcome reprieve in March when alcoholic drinks were handed an exemption.

The drinks behemoth also confirmed it will not be affected by the separate tariff spat between the US and China.

The cost of a pint of Guinness could be set to rise after drinks giant Diageo warned it faces a hefty £113million-a-year bill due to fresh US trade tariffs imposed by Donald Trump

The London-listed firm, which also produces Johnnie Walker whisky, Gordon's gin and Baileys, revealed the expected hit as it unveiled a sweeping £375.6million cost-cutting drive

Here's a breakdown of where you can find the cheapest, best, and most expensive pints this St. Patrick's Day in Britain

In response to the financial hit, Diageo has launched a £375.6million cost-saving plan aimed at freeing up cash for further investment and improving its financial strength.

The firm said it will move to 'a more agile global operating model' to support this goal.

Despite the pressure from tariffs, the Guinness-maker reported a 2.9 per cent increase in net sales to £3.28billio for the three months to March 31, driven in part by continued strong demand for its flagship stout.

However, European sales dipped 1.3 per cent over the same period, as robust Guinness sales were dragged down by what the company described as 'further softness' in spirits across key markets.

Organic spirit sales in the region fell year-on-year, despite a rise in tequila demand.

In contrast, the North American market fared much better, with sales rising by 5.9 per cent on the back of strong US spirits shipments.

Diageo's chief executive Debra Crew said: 'In the third quarter we delivered strong organic net sales growth and are on track to deliver on our guidance of sequential improvement in organic net sales performance in the second half of fiscal 2025.

'We also reiterated our organic operating profit outlook for fiscal 2025, including the impact of tariffs based on what we know at this time.

'We continue to believe in the attractive long-term fundamentals of our industry and in our ability to outperform the market.

'We view the near-term industry pressure as largely macro-economic driven, with continued uncertainty impacting both the timing and pace of recovery.'