Possible influence of tariffs on Italy's $2 billion worth of wine exports to the U.S.
Grappling with a Potential 20% Tariff: Theplight of Italian Wine Producers
Italian wine has captured the hearts of American consumers, making Italy the leading supplier of imported wine to the U.S. in the past decade. However, an impending 20% tariff looms, sparking anxiety among Italian wine producers. This stems from the fact that the U.S. accounts for approximately one-third of Italy's total wine exports and generates a whopping €4.5 margin for importers, distributors, and retailers.
"The tariffs could raise wine prices for the U.S. consumer," warns Adolfo Rebughini, General Manager of Veronafiere. "But the U.S. market is too crucial to relinquish easily in the short-term."
Italian wine executives are devising strategies to maintain positive relationships with American wine buyers, trade professionals, and consumers. These initiatives are aimed at mitigating the potential impact of the prospective tariffs.
Promoting VinItaly Trade Fairs in Verona and the USA
Wine is deeply ingrained in Italian culture, and it was one of the first countries to establish a large annual trade show, now known as VinItaly. This event invites wine buyers from around the world to savor and learn more about Italian wines while negotiating sales deals.
"Since our organization, Veronafiere, started managing VinItaly in 1898, the mission has been to promote and foster the global wine business for Italian wines," explains Federico Bricolo, President of Veronafiere.
In recent years, the success of the main VinItaly fair has led to the launch of VinItaly-USA. Held in Chicago, it attracted 1,500 American wine buyers in 2024. The trade shows provide matchmaking tools, content, education, and Italian wine masterclasses to support wine-related businesses.
Government Relationship Building and Wine Ambassador Programs
Italy's Prime Minister, Giorgia Meloni, personally reached out to the Trump administration to discuss tariffs and affirm Italy's commitment to the U.S. market. Another strategy to improve relationships is the VinItaly Ambassador program, which educates wine professionals on the intricacies and pleasures of Italian wine. To date, over 1,500 ambassadors have graduated from the VinItaly International Academy.
Exploring Other Markets for Italian Wine
While maintaining their position as the top wine import country to the U.S. is a major priority, Italian wineries are also looking at alternative markets to maintain their revenues. Potential new markets include India and expanding tasting events in South America and Asia, although the premium质量 of Italian wines may limit their competitive edge in some emerging markets.
If the tariffs are implemented, Italian wine producers will need to balance premiumization with cost-effectiveness while accelerating their diversification efforts. The tariff's long-term impact will depend on Italian exporters' ability to navigate these challenges successfully.
- Federico Bricolo, President of Veronafiere, remarks that their organization has been promoting and nurturing the global wine business for Italian wines since managing VinItaly in 1898.
- In 2024, VinItaly-USA, held in Chicago, attracted 1,500 American wine buyers, offering matchmaking tools, content, education, and Italian wine masterclasses to support wine-related businesses.
- Stevie Kim, a graduate of the VinItaly International Academy, plays a vital role as an ambassador, educating wine professionals on the intricacies and pleasures of Italian wine.
- With the potential 20% tariffs on Italian wine, wineries are exploring other markets like India and expanding tasting events in South America and Asia to maintain their revenues, while balancing premium quality with cost-effectiveness.
