Throughout the first Trump administration, Italian wines have been exempt from tariffs, and as of proper now, no duties have been declared in opposition to European allies. Nonetheless, to safeguard the market, Prosecco importers and distributors say they’re taking preventative motion.
US importers have been hoarding Italian bubbly prosecco as a buffer in opposition to the potential results of tariffs that President Donald Trump has threatened to impose on EU merchandise, wine trade knowledge reveals.
The Union of Italian Wines commerce affiliation reviews that following Trump’s election, US imports of Italian glowing wine, 90% of which is prosecco, elevated by 41% in November, considerably exceeding client demand as importers stocked the pipeline for future gross sales.
“It was fairly pure on the finish of the 12 months to do further shipments,” mentioned the commerce affiliation president, Lamberto Frescobaldi, given the uncertainty over whether or not tariffs would hit Italian wines or not—and the chance customers would in the reduction of on such luxuries if tariffs made them too dear.
“Can we survive and not using a glass of wine? Sure. Wine is a pleasure,’’ Frescobaldi informed AP this week.
Throughout the first Trump administration, Italian wines have been exempt from tariffs, and no duties have been declared in opposition to European allies as of now. Nonetheless, to safeguard the market, prosecco importers and distributors say they’re taking preventative motion.
Italy’s wine exports to the US totalled €1.9 billion final 12 months, with prosecco changing into the top-selling Italian wine, representing almost 40% of all gross sales.
The primary indicators of market concern confirmed up even earlier than Trump was elected, with prosecco shipments to the US rising 17% within the first 10 months of 2024.
That compares with extra modest single-digit will increase to the following two markets, Britain and Germany, and much outpacing US consumption, which rose simply 0.6% within the interval.
“It is a vital determine that we didn’t anticipate,” mentioned Giancarlo Guidolin, president of the Prosecco DOC consortium, the biggest of Italy’s three prosecco-producing teams.
”We predict there was a rise in product within the warehouse.”
One different issue within the increased deliveries could have been a threatened port strike in January, mentioned Dina Opici, chairwoman of the Wine and Spirits Wholesalers of America.
“That mentioned, clearly taking into account that there might be impending tariffs as properly, I believe it most likely gave individuals a better consolation degree in making that funding,” Opici mentioned.
Based on the Commerce Federation, Italy exports almost one-quarter of its wine to the US, leaving the sector extra closely uncovered to doable tariffs than some other Italian export.