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Italian wine associations and consortia have reacted with concern to the introduction of US tariffs. According to the wine association Unione Italiana Vini (UIV), Italian wineries face annual revenue losses of 323 million euros due to this.
Last year, Italy exported approximately 480 million bottles worth 1.94 billion euros to the USA, according to UIV. The appellations most dependent on the US market are Moscato d’Asti (60% export share to the USA), Pinot Grigio (48%), Chianti Classico (46%), Prosecco, and Brunello di Montalcino (27%).
Lamberto Frescobaldi, president of UIV, calls for close cooperation between Italian producers and their trading partners in the USA. He aims to minimize price increases for consumers: "Our American allies, who benefit greatly from imported wines, must share the additional costs with us instead of passing them on to consumers. A united front along the entire supply chain is necessary to avoid price increases on the shelves."
Foreign wineries do not directly pay the tariffs on wine exports to the USA. The tariffs are only due when the goods reach the US port of entry. It is the importer – a US company with US employees – who must settle the bill immediately. For example, if wine worth $5,000,000 arrives at a port in the USA and a tariff rate of 20 percent applies, this means an immediate payment of $1,000,000 by the importer. If they can even make the payment, they can only recover the money through price increases.
Giovanni Manetti, president of the Chianti Classico consortium, also hopes for a diplomatic solution: "We are certainly concerned about the impact that the 20 percent tariffs could have on our wines, and we are now relying on Italian and European diplomacy to reconsider this decision of the Trump administration as soon as possible." It is now up to the producers to find a solution together with US trade.
Giovanni Busi, president of the Chianti consortium, takes a different tone: "We regret the US president's decision on the tariffs, but we cannot afford to remain idle. Now is the time to strengthen our presence in new markets – especially in South America, where the Mercosur agreement can open up great opportunities for our wine. At the same time, we must invest in Asia and begin to position ourselves in Africa and India to diversify our exports and reduce dependence on the USA."
The EU-Mercosur agreement is a controversial free trade agreement between the EU and the South American trade bloc, consisting of Brazil, Argentina, Paraguay, and Uruguay. Although the agreement has been reached, it has not yet been ratified due to environmental concerns. It aims to reduce tariffs between Europe and South America and stimulate trade.
It is very unlikely that diplomatic negotiations with the US government will lead to an end to the trade dispute. The intentions of the US president are clear. He wants to strengthen the American economy and artificially increase the cost of foreign products. However, economic experts believe that the US economy will suffer rather than benefit in the long term from Trump's trade war.
(ru / UIV, press releases)
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