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In a day of broad global stocks declines as President Donald Trump’s tariffs rattle markets, shares of one major European drinks maker are holding up—thanks to its production in Mexico and Canada.

Shares of Diageo ( DEO ), the maker of Don Julio tequila and Crown Royal Canadian whiskey, were slightly higher in recent trading, even as worries about the tariffs imposed by the Trump administration hammered global markets and European stocks.

Canada and Mexico weren’t subject to new reciprocal tariffs announced Thursday and continue to face the 25% levies Trump levied earlier this year. Alcoholic beverages made in those countries, meanwhile, are exempt, because they are among USMCA-compliant goods.

In a note Thursday, UBS said of Diageo’s U.S. sales, 55% are exempt from tariffs because 38% are produced in Mexico and 19% in Canada. The UBS numbers are based on Diageo’s fiscal 2025 figures. Nearly all its tequila products are produced in those two countries, the company said recently.

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