Future Of Prosecco, Other Italian Wines in The U.S. Uncertain

With President Donald Trump imposing a 20% tariff on all imports from Europe as part of his “Liberation Day” announcement, producers of Italian wines and U.S. importers fear worsening conditions for their businesses, Reuters reported.

Under the new levies, Italian wine revenues could fall by approximately €323 million annually

Italy exports more wine to the U.S. than any other country. Last year, it sold $2.2 billion worth of wine to the U.S., representing 25% of its total global exports.

Under the new levies, Italian wine revenues could fall by approximately €323 million annually, according to Lamberto Frescobaldi, chairman of the Italian Wine Union lobby. Wine traders and producers are now pinning their hopes on a deal between Europe and the U.S. to reduce or eliminate the tariffs.

“Hopefully, the EU will not retaliate—a trade war would be difficult to navigate,” said Simone Luchetti, president of U.S. importer Banville, during the Vinitaly fair in Verona. Although the sector was spared the 200% tariff previously threatened by Trump, the threat remains, especially if the EU targets U.S. spirits like bourbon in its response.