President Trump’s threat to impose a 200 percent tariff on European wine has caused shipments of popular Italian wines like Brunellos, Chiantis, and Proseccos to halt. In Tuscany, where many of these wines are produced, thousands of bottles meant for American markets are stranded in wineries and storage rooms. American importers are hesitant to place orders due to the potential affordability issues that could arise if the tariffs are implemented, with a $20 bottle potentially costing $60.
Italy, along with France and Spain, is highly reliant on the American market for wine exports, with nearly a quarter of Italy’s wine exports going to the United States each year. For Tuscan wineries, the threat of tariffs is exacerbating existing issues such as the rise of nonalcoholic alternatives. Importers in the United States are also feeling the impact of the trade war, with uncertainties causing them to pause shipments that could arrive after tariffs go into effect.
President Trump’s announcement of the proposed tariffs on European wine and champagne on social media sparked a retaliatory trade dispute with the European Union. While the EU has delayed the tariff to allow for negotiations, the wine industry on both sides of the Atlantic is bracing for potential losses. American wine producers, in particular, stand to lose out on sales, as many small businesses rely on European wines to attract customers.
The uncertainty caused by the escalating trade war has forced importers to put shipments on hold, affecting wineries across Italy, France, and Spain. Some importers, including those who import Portuguese wine, have canceled orders last minute due to the risk involved. While some importers are still placing orders, the threat of tariffs looms large, potentially inflicting irreparable harm on the industry. Tuscany, in particular, faces a significant loss as American tourists who prefer Italian and French wines could be deterred by increased prices.
Tuscans are hopeful that the European Union can persuade President Trump to reconsider the tariffs, but the damage caused by the uncertainty of the trade war may already be done. Wineries like Ruggeri in northern Italy have already lost time organizing promotional activities and tastings for American importers. The wine industry is bracing for potential losses that could have long-lasting effects, even if the trade battle eventually cools. The American market, which has been a significant source of revenue for wineries across Europe, is considered irreplaceable.
