VERONA(ITALY): 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% tariff on European imports.
Italy exports more wine to the US than any other country. Last year, it sold euro 2 billion ($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 hit by the fear of US tariffs and things could only get worse as they come fully into effect.
Under the announced levies, Italian wine revenues would fall by some euro 323 million 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% tariff Trump had threatened to impose, it remains a threat if European counter-measures target US spirits, such as bourbon whiskey.
Luchetti, who imports Brunello, Amarone, Prosecco and Barolo among others, estimated a 25-35% 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.
Italy exports more wine to the US than any other country. Last year, it sold euro 2 billion ($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 hit by the fear of US tariffs and things could only get worse as they come fully into effect.
Under the announced levies, Italian wine revenues would fall by some euro 323 million 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% tariff Trump had threatened to impose, it remains a threat if European counter-measures target US spirits, such as bourbon whiskey.
Luchetti, who imports Brunello, Amarone, Prosecco and Barolo among others, estimated a 25-35% 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.
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