U.S.-listed shares of Diageo climbed on Thursday after U.S. President Donald Trump said he would lift tariffs and related restrictions that had affected Scotland's ability to work with the state of Kentucky on whiskey and bourbon.
In a post on Truth Social, the president referred to long-standing commercial links, noting in particular the trade connected to wooden barrels used in spirits production.
"People have wanted to do this for a long time, in that there had been great Inter-Country Trade, especially having to do with the Wooden Barrels used," Trump wrote.
The market reaction was visible in Diageo's American depositary receipts, which rose around 4% on the day. Quoted data in market feeds showed a price of 80.49 USD, an increase of 3.09 USD or roughly 3.99% in intraday trading.
The tariff announcement comes while King Charles is on a visit to Washington aimed at reinforcing ties between the United Kingdom and the United States. It also follows a 2025 agreement between the two governments that permits Washington to impose a 10% baseline tariff on many British imports.
Separately, Diageo's chief executive indicated on Wednesday that the company plans to streamline its regional management team as part of ongoing turnaround measures. Company executives framed the management changes as an element of efforts to improve operational performance.
The developments link trade policy, diplomatic engagement and corporate restructuring. The relaxation of restrictions cited by the president pertains specifically to Scotland-Kentucky cooperation around whiskey and bourbon - an area of commercial exchange highlighted in the president's post - and the corporate update from Diageo signals internal steps intended to complement broader market conditions.
While the market moved sharply on the tariff news, the public statements provide limited detail about timing or the precise mechanics of the change in trade restrictions. Similarly, the company statement about regional management streamlining outlines plans without elaborating on specific organizational changes.
Market snapshot: Diageo ADR (DEO) saw intraday gains of about 4% following the announcement.