The Italian wine and spirits industry is facing a significant setback as exports to the United States slow due to fears of impending tariffs.
According to trade group Federvini, U.S. importers are hesitating to place new orders as they await clarity on whether President Donald Trump will impose a 200% tariff on European alcohol imports.
The Growing Trade War
Trump’s tariff threats are part of a broader trade dispute involving steel and aluminum products, with the White House expected to make a decisive announcement on April 2. The looming 200% tariff has sent shockwaves through the Italian wine sector, leading many importers to pause shipments for fear of losing profitability.
Federvini’s president, Micaela Pallini, explained the severity of the situation: “Our members have received requests from importers to suspend shipments, as no one wants to risk bottles being hit by tariffs once they arrive in the U.S.”
Market at a Standstill
Initially, Italian wine producers ramped up shipments to the U.S. in late 2024 to get ahead of potential duties. However, as the decision date nears, the market has ground to a halt. Importers worry about accumulating unsellable stock at uncompetitive prices, causing a ripple effect across the supply chain.
The consequences are already visible: certain U.S. restaurants are running out of Italian wines, while prices for available stock are rising. Prosecco producers have been hit particularly hard, with shipments frozen over uncertainty about potential tariffs. Business newspaper Il Sole 24 Ore reported that Tuscan producer Ruffino has one million bottles stranded at the port of Livorno due to the cancellation of all U.S. orders for March.
Italy’s Political Response
Italian prosecco trade groups have written to Agriculture Minister Francesco Lollobrigida, warning of tariff hikes that could devastate exports. They are urging intervention at both national and European levels to mitigate the crisis.
While Italian Prime Minister Giorgia Meloni maintains a relatively close relationship with Trump compared to other European leaders, it remains uncertain whether this diplomatic positioning will shield Italy from the harsh economic implications of new tariffs. Given Italy’s deep-rooted trade ties within Europe, Meloni faces a complex balancing act in negotiating a favorable outcome.
Outlook for the Italian Wine Industry
The U.S. has been a crucial market for Italian wines, especially sparkling varieties like Prosecco. Any prolonged disruption could have lasting effects on producers, distributors, and consumers alike. With the White House’s decision looming, the Italian wine sector anxiously awaits clarity on its future in the American market.
Source: Reuters