Here’s how Trump’s tariffs could affect UK companies

World leaders bickering, share prices dropping, companies fretting.

- KARL MATCHETT

On the other side of the Atlantic, President Trump's vows to bring in tariffs for multiple countries exporting to the US - plus his stepping back from them at the last moment in some cases – has plenty of people wondering what it might mean on these shores.

UK companies won’t be exempt from the possible carnage, though of course who and how they will be affected will depend on their types of business: those who export to the US could face higher charges immediately, while those who buy in parts or raw materials might also be concerned if the UK takes China’s route and opts for retaliatory tariffs, too.

That’s still far from certain, of course, with the UK and the EU not the first areas in Donald Trump’s sights.

But that doesn’t mean UK companies aren’t immediately impacted. Take Diageo, for example.

If you don’t habitually scan investment markets you might not know that company name, but you almost certainly will know their brands: Johnnie Walker whisky, Gordon’s gin, Smirnoff vodka, Guinness. It owns them all and plenty more, and sells them all over the world – and believes it would take a $200m (£160m) hit to operating profits if tariffs come into force.

Chief financial officer Nik Jhangiani suggested the company might be able to cover “about 40 per cent” of that hit, before needing to take action with regards to prices, per the Financial Times.