During the first Trump administration, Italian wines were exempt from tariffs, and as of right now, no duties have been declared against European allies. However, to safeguard the market, Prosecco importers and distributors say they are taking preventative action.
US importers have been hoarding Italian bubbly prosecco as a buffer against the potential effects of tariffs that President Donald Trump has threatened to impose on EU products, wine industry data shows.
The Union of Italian Wines trade association reports that following Trump’s election, US imports of Italian sparkling wine, 90% of which is prosecco, increased by 41% in November, significantly exceeding consumer demand as importers stocked the pipeline for future sales.
“It was quite natural at the end of the year to do extra shipments,” said the trade association president, Lamberto Frescobaldi, given the uncertainty over whether tariffs would hit Italian wines or not—and the likelihood consumers would cut back on such luxuries if tariffs made them too pricey.
“Can we survive without a glass of wine? Yes. Wine is a pleasure,’’ Frescobaldi told AP this week.
During the first Trump administration, Italian wines were exempt from tariffs, and no duties have been declared against European allies as of now. However, to safeguard the market, prosecco importers and distributors say they are taking preventative action.
Italy’s wine exports to the US totalled €1.9 billion last year, with prosecco becoming the top-selling Italian wine, representing nearly 40% of all sales.
The first signs of market concern showed up even before Trump was elected, with prosecco shipments to the US increasing 17% in the first 10 months of 2024.
That compares with more modest single-digit increases to the next two markets, Britain and Germany, and far outpacing US consumption, which rose just 0.6% in the period.
“It is an important figure that we did not expect,” said Giancarlo Guidolin, president of the Prosecco DOC consortium, the largest of Italy’s three prosecco-producing groups.
”We think there was an increase in product in the warehouse.”
One other factor in the higher deliveries may have been a threatened port strike in January, said Dina Opici, chairwoman of the Wine and Spirits Wholesalers of America.
“That said, obviously taking into consideration that there could be impending tariffs as well, I think it probably gave people a higher comfort level in making that investment,” Opici said.
According to the Trade Federation, Italy exports nearly one-quarter of its wine to the US, leaving the sector more heavily exposed to possible tariffs than any other Italian export.
Source: Euronews