Unione Italiana Vini: “Italian wine would not toast a deal between the US and EU with 10% tariffs”

Negotiations on tariffs between the US and the EU are continuing, with July 9 as the deadline, which remains valid for now. Everyone is hoping for a diplomatic solution that will also remove the universal tariffs currently set by Trump at 10%, compared to the initial 20% that lasted only a few days in April. Meanwhile, others, such as Economy Minister Giancarlo Giorgetti, have emphasized in recent days that maintaining the tariff at 10% would already be a good compromise. However, this hypothesis does not sit well with the Italian wine industry, which has its largest foreign market in the United States. “No toast to the possible agreement on 10% tariffs for Italian wine companies, which send 24% of their exports to the United States, worth €1.94 billion in 2024”. This is according to Unione Italiana Vini - Uiv, which, through its Observatory, surveyed the opinions of some of Italy’s leading wine companies, according to which “the estimated damage to overseas sales would in fact be between 10 and 12%, which is also affected by the euro/dollar exchange rate. The reason is clear: for 90% of the companies surveyed (whose aggregate turnover exceeds €3.2 billion), consumers would not be able to absorb the extra cost at the shelf determined by the 10% duty. Hence the opinion shared by the vast majority of the panel that the impact on companies would be significant overall in 77% of cases: “medium-high” for 61% and “very high” for 16%”, explains Unione Italiana Vini.
“It should be remembered”, said UIV President Lamberto Frescobaldi, “that the wine sector is among those most exposed to increased barriers, primarily because the US export share reaches 24%, compared to an average of just over 10% for Italian products, but also because wine is a luxury item and therefore more likely to be foregone. The damage would certainly be felt”, concluded Frescobaldi, “not only by our companies, but also by the US commercial chain, which generates $4.5 for the American economy for every dollar invested in European wine. In Italy, small businesses will be particularly penalized - many of them send up to 50% of their turnover overseas - as will flagship appellations in the US, such as Moscato d'Asti, Pinot Grigio, Chianti, Prosecco, Lambrusco, and others.