Trump's 20% tariff casts shadow over Italian wine exports

Visitors stand outside a pavilion, which reads 'Keep calm and drink Italian wine' at the international wine and spirits fair Vinitaly which occurs amid the newly imposed US tariffs, including the European Union wine imports, in Verona, Italy, Apr 6, 2025. REUTERS/Claudia Greco

The outlook for Prosecco, Brunello di Montalcino and other Italian wines in the United States is increasingly gloomy, producers and importers said, following President Donald Trump's imposition of a 20 percent tariff on European imports.

Italy exports more wine to the US than any other country. Last year, it sold 2 billion euros ($2.2 billion) worth of wines, spirits and vinegars in the US market, a quarter of its total worldwide exports, according to trade group Federvini.

Italian producers and US importers gathered at a wine fair in Verona, in the north-eastern Veneto region this weekend, said business had already been slowed by the fear of US tariffs and they fear more lasting damage as the duties take effect.

Under the announced levies, Italian wine revenues would fall by some 323 million euros per year, said Lamberto Frescobaldi, chairman of the Italian Wine Union lobby.

Wine traders and producers are pinning their hopes on a deal between Europe and the US to scrap or reduce the tariffs.

"Hopefully, the EU will not retaliate - a trade war would be difficult to navigate," Simone Luchetti, president of US importer Banville, told Reuters at the Vinitaly fair in Verona.

While the sector was spared the 200 percent tariff Trump had threatened to impose, it remains a risk if European counter-measures target US spirits, such as bourbon whiskey.

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Luchetti - who imports Brunello, Amarone, Prosecco and Barolo among others - estimated a 25-35 percent drop in US consumption and in Banville's revenues under current tariffs.

Other importers warned that some wine brands would disappear from the US market as consumers looked for cheaper bottles.

"If the price of a wine increases, consumers will probably leave that brand. They will rather stay within their preferred price range," said Charles Lazzara, founder of US buyer Volio Imports.

Under the announced levies the cost of a bottle of mid-range Prosecco, Lazzara said, would rise from $10.99 to $12.99 in US shops.

Luchetti echoed those concerns.

"It will probably become difficult to sell Prosecco bottles which today cost $14-18 because their price will rise to $20," Luchetti said.

The US tariffs also worried Italian producer Marilisa Allegrini, founder of the Marilisa Allegrini Group, which produces 840,000 bottles per year, including Brunello di Montalcino, Bolgheri, Valpolicella and Amarone.

"Wine consumption in the US was already in crisis, and tariffs have hit it further," she said.

Some Italian producers, however, were more upbeat, saying US drinkers love Italian wines and are unlikely to replace them with cheaper alternatives, despite the tariffs.

"Prosecco can only be produced in Italy, especially in Veneto - it can't be replaced!" said Giancarlo Moretti-Polegato, owner of Villa Sandi, a prosecco producer based in the hills of Montebelluna, in the Veneto region.