US-EU tariffs focus on wine. For Minister Lollobrigida it is “the sector that worries us the most”

The US-EU tariff dispute has been shaping a definitely variable scenario over the past few months, where changes are the order of the day. While we are waiting to find out whether wine and other European agri-food products will be hit with a 15% tariff, or they (and which ones) will be saved and included in the “zero-for-zero” list (that is highly anticipated as rumors from Brussels say that spirits have a better chance than wine, which is holding out hope until the very end), according to the Agriculture Minister Francesco Lollobrigida, the wine sector, which is in better shape than the others, as he told WineNews on July 11th, today instead “is the one that worries us the most”. On this point, it seems there is still a possibility of revising negotiations. Tariffs on spirits, also produced in the US, is easier, and could end in a zero-for-zero deal. We will find out over the next several days whether there will actually be a reduction in exports. We have called a meeting of the production system to address the wine issue, not only related to tariffs, but also an overall strategy, at Palazzo Chigi on Monday, August 4th”, Lollobrigida stated. In an interview with the newspaper “Corriere della Sera”, he addressed the issue of tariffs (and other issues), emphasizing that the impact on some supply chains could be less than on others, pending official documents, and then actual market assessments, as these are still only theoretical speculations. In the meantime, all the trade associations in the wine sector, CEEV, Federvini, Unione Italiana Vini - UIV, have rejected the US and the EU agreement, between Trump and Von der Leyen, as have agricultural organizations such as Coldiretti and Fedagripesca Confcooperative (and some, such as CIA-Agricoltori, besides risking a direct drop in Italian wine imports, also underlined the effect of substituting products from other countries at lower duties or lower and therefore more advantageous prices). There are also those in the market who maintain that a 15% duty is an “obstacle that can be overcome”, however, we absolutely need to implement a support plan and a “common front” among producers, institutions and importers. “The 15% tariff agreement between the EU and the US is a significant, but not insurmountable, challenge. However, concrete and immediate measures are needed. Why not allocate part of the NRRP or CMO Wine funds to a special plan to support exports to the US? This would give a strong signal of responsibility and vision”, Edoardo Freddi, CEO of Edoardo Freddi International, one of Italy’s most advanced export companies, said.
“Right now, we need a concerted effort. Producers, institutions, and importers must join forces.We must support those in the market, who promote and sell Italian wine overseas every day, because without them, we wouldn’t exist. Of course, we must stand by our American customers, more than ever. A 15% tariff is definitely burdensome, though it’s not the end of the world. It’s an obstacle that can be overcome if we are united, flexible, and ready to adapt. The real issue today is the exchange rate, which is severely penalizing our exports. This, too, will pass. The storm will blow over, and we must be ready, and united. We cannot stop. It’s time to double down in our efforts and move forward using intelligence and determination”, Freddi concluded.