Italian Winemakers Prepare For Trump's Tariffs

Forbes

14-04-2025

A general view of the Verona fair center during the 57th Edition of Vinitaly, an international ... More exposition of wine and spirits, in Verona, Italy, on April 6, 2025. (Photo by Roberto Tommasini/NurPhoto via Getty Images)
Italian winemakers are worried, not frightened.
When the 57th edition of Vinitaly, the most important international exhibition of Italian wines, opened on April 6, nearly everyone in the Italian wine world was braced for a 20% duty on the export of Italian wines to the United States. But this news didn't spoil the euphoric and glamorous atmosphere of Vinitaly.
After an initial moment of bewilderment and disappointment, the event went on as usual, although tariffs was one of the most discussed topics during the exhibition. Because of the presence of 1,200 top buyers — with the Americans in pole position — many Italian wine producers took advantage to discuss with them what to do next.
'It's too early to plan a reaction," says Raffaele Librandi, president of Cirò Consortium in Calabria. 'Our US market share is only 5%, so the harm would be limited. Anyway, we and many other Italian wine producers prefer to wait and see what happens in the next few days.'
Fabio Zenato, wine producer and president of Lugana wine Consortium, a prestigious wine denomination on the Lake of Garda, says that it would be wrong for the Italians to give up up the American market altogether.
"We invested so much in the US markets over the years," Zenato says. 'Discontinuing now these investments only because of these duty is not wise, because for sure it won't last forever. Although we share the general worrying of other wine producing regions, much more at risk than us, we prefer to stay at the window right now, and awaiting.'
"I think that the key to overcome this issue is having a strong partnership with our commercial partners overseas," the Sicilian Giovanna Caruso says. Her Caruso & Minini winery exports roughly 60% of its wine production.
'We can absorb half of the surge if they agree to do the same. We need to cultivate a positive mindset,' she said.
"I help you if you help me" seems to be the approach chosen by many wine professionals, whether producers, importers, or buyers.
''Let's come together. You pay one third of the tariffs, we do the same, and the consumers will pay the last third with just a small increase of price on the bottle.'
'This was a solution suggested by some American importers to Andrea Rossi, the president of our Consortium, and I think it makes sense,' Susanna Crociani says. She is a wine producer in Montepulciano and the vice-president of the Consortium of the renowned appellation Vino Nobile di Montepulciano. 'After all, our wines are premium wines,' she says. 'A few dollars of increase on an expensive bottle is not a tragedy.'
A view of Consortium Sicilia DOC booth.
Antonio Rallo, the president of Consortium Vini DOC Sicilia recommends prudence: 'Let the diplomacy work," he says. 'We believe there is still room for maneuver, and are confident that the common sense will eventually prevail.'
'We are sure that our communication efforts and our investments in the USA to elevate the image of Sicilian wines have not been in vain. Even though the duties will stay at 20% we are confident that American wine lovers will accept to pay a bit more than give up on drinking Sicilian wine completely,' Rallo says.
Pinot Grigio Delle Venezie is another denomination with a significant presence abroad. 'The situation is complex and evolving," the wine producer and president of Delle Venezie DOC Consortium Albino Armani acknowledges. 'Some importers are slowing down purchases, but others continue to operate smoothly. Pinot Grigio destined for the U.S. market is a key part of the appellation's exports, and it continues to perform well, in stark contrast to the general contraction in consumption.'
'Duties are likely to affect the entire sector across the board, but we will not be caught unprepared," Armani says.
In 2024, the United States solidified its position as the leading market for Italian wine, accounting for approximately 24% of total exports. Shipments to the U.S. reached $2.05 billion, reflecting a 10.2% increase in value and a 7% growth in volume over 2023.
Among the regions more exposed to the potential harm of wine duties is Veneto. Trump's tariffs would severely penalize a sector that in this part of Italy counts on 9,569 large wineries and 12,797 members of wine cooperatives with almost 20,000 employees, and a wine production that in 2024 reached 11.6 million hectoliters.
Veneto is also the first Italian region for the wine exports: over $3.318 billion, 21% to the U.S. One of the areas that could be impacted by duties is Valpolicella. The USA is a significant market for Amarone della Valpolicella and Valpolicella Ripasso. However, because of the high level of uncertainty that still surrounds the issue, the president of Valpolicella Consortium says to keep calm.
'As a Consortium, we have never delved into the topic of US duties so far," Christian Marchesini says. "During Vinitaly though we broached the subject with all the government officials present, asking them to activate coordination between the relevant Ministries and to support us in expanding promotional activities, with the aim of investing even more in foreign markets."
Portrait of Luca Zaia, Governor of the Veneto Region, during the 57th Edition of Vinitaly (Photo by ... More Roberto Tommasini/NurPhoto via Getty Images)
The Veneto governor Luca Zaia shares this approach: "I believe that U.S. duties are a turning point to renew our export policies, looking at alternative markets, emerging or established, that offer stability and margins for growth. We do not need useless revenges, we need to defend work, enterprise and productive identities, with concreteness and resilience.'
And resilience and concreteness are two concepts the Italian wine world calls up every day, or almost. They also are the skills the wine producers need to face the challenges of the climate changes, even more than to facing the duties. Human beings pass away, but nature remains. Unlike individuals, it does not provide space for dialogue.