10-04-2025
Tariffs And Trade Winds: Vinitaly 2025 Reshapes Italian Wine Strategy
Vinitaly 2025 has just wrapped, and while the pavilions were filled with wine, espresso, and handshakes as always, there was no mistaking what dominated the conversation this year: U.S. tariffs. Vinitaly is Italy's largest international wine and spirits trade fair, held annually in Verona, bringing together producers, buyers, importers, and industry professionals from around the world.
Though this is, at its core, an Italian wine trade fair, the real gravitational pull came from across the Atlantic. Importers, producers, retailers, journalists—everyone, everywhere—seemed to have the U.S. front and center in their minds. That's because America holds a major slice of the pie when it comes to Italian wine exports, and on April 2, the Trump administration's announcement of a sweeping 20% tariff on select categories of Italian wine sent a ripple effect through the global marketplace.
Markets shifted. Distributors recalibrated. Strategic meetings turned tactical.
But if you were expecting panic in Verona, you'd be mistaken. The tone at Vinitaly was not fear—it was focus. Within hours of the announcement, producers large and small were adjusting pricing, working through customs codes, and exploring new models. What could have been a crisis became, for many, a moment to move.
This year, Vinitaly wasn't just a showcase of Italian excellence. It was a high-functioning nerve center of global trade—one that revealed both the fragility and the agility of the wine industry in a fast-moving world.
As the dust settled and the conversations deepened, one theme became clear: the industry wasn't waiting to see what would happen next—it was already acting. From major importers hedging inventory to producers reassessing strategies on the ground in Verona, the response to the tariffs offered a snapshot of how quickly and cohesively the wine world can mobilize when the stakes are high.
A Unified Response from the Consorzio
Within 24 hours of the announcement, the Chianti Classico Consortium stepped forward with a clear message, aiming to strike a balance between concern and confidence. 'We are particularly concerned about the repercussions that the 20% tariff could have on our exports,' said Giovanni Manetti, President of the consortium. 'But we must have faith in our leaders, and we producers will work together to shoulder the burden. We believe American consumers will remain loyal to our wines, to the Black Rooster, and to the unique region behind every bottle.'
That message of solidarity and swift action wasn't limited to producers alone. On the U.S. side, importers were already responding in real time, making decisive moves to buffer the impact and keep wine flowing through the system.
Importers Move First to Protect the Pipeline
While the immediate cost of the tariffs lands on wine at the point of entry, the ripple effects quickly spread through the entire three-tier system—especially for importers, who serve as the critical link between European producers and U.S. distributors. With margins already tight and contracts often locked months in advance, many importers had to make quick, high-stakes decisions. In anticipation of the President's April 2 announcement, several—among them Wilson Daniels and Banville Wine Merchants—chose to hedge their bets, securing significant inventories of European wines and ensuring that shipping containers were en route to the U.S. before the new tariffs could take effect.
At an annual producer dinner hosted by Banville during Vinitaly, the atmosphere was more than celebratory—it was grateful. Producers like Klaus Gasser of Cantina Terlano and Claudio Farina of Azienda Agricola Farina openly praised Banville CEO Simone Luchetti for his swift action, which allowed their wines to remain in circulation without immediate pricing disruptions. For some larger firms, the move meant locking in nearly a year's worth of inventory. Banville secured three to four months' worth—enough to buy time, maintain momentum, and avoid passing costs downstream. Still, not all importers had the capital or logistical flexibility to make similar moves, highlighting the uneven impact the tariffs could have across the U.S. wine market.
Inside the Numbers: The Pressure of the Three-Tier System
For Banville's Luchetti, acting fast wasn't just about protecting margins—it was about protecting relationships. Vinitaly became a critical moment to reaffirm trust with producers and assure them that Banville was not only prepared, but committed to navigating the challenge side by side. 'Hope and pray is not a strategy,' Luchetti said. 'We hope these tariffs don't close anyone's doors—but we're not standing still.'
Securing early shipments was only one piece of the puzzle. Ensuring access to U.S. warehouse space—particularly in New Jersey, where Banville operates—was equally essential. 'Relationships here are key,' he emphasized. 'You need the logistical infrastructure in place long before the container hits the water.'
While some in the industry have suggested that producers, importers, and distributors can simply split the cost burden of tariffs across the chain, Luchetti cautions that the U.S. three-tier system leaves very little room to maneuver. 'The margin for wholesalers or importers is not that big,' he said. 'The American system makes it impossible to divide things up evenly when you're already operating on razor-thin margins.'
To illustrate the complexity of that system, Luchetti points to one of Banville's long-standing partners, Slovenian producer Domaine Marjan Simčič. A bottle of his Rebula white wine typically retails for about $22 in the U.S.—but is sold to Banville for just $2.66. Once the importer, distributor, and retailer apply their respective markups, the bottle reflects a 728% increase from winery to consumer. Before anyone gets upset about that, you have to understand the structure. Wineries are already selling at their lowest viable price. There is no room to offer a discount. And the three-tier system isn't going anywhere. This is just the reality of the American wine industry.
Ultimately, the burden of the tariff falls squarely on the importer the moment the container arrives in the U.S. port. Whether or not that cost is passed along to the consumer—and how—is a calculation that varies case by case. But the financial pressure starts long before the bottle ever hits the shelf.
Why America Dominated the Conversation—at an Italian Fair
Though Vinitaly is firmly rooted in Italy, it has always been global in its impact. The United States remains the single largest market for Italian wine exports, accounting for more than $2 billion annually—nearly a quarter of Italy's total wine export value. The significance of that footprint can't be overstated.
Even before tariffs, the Italian wine sector was already navigating razor-thin margins, inflationary pressure, rising logistics costs, and the ever-present conversation of lower demand for alcohol. Now, the sudden imposition of tariffs—at the height of buying season—has triggered an industry-wide scramble to reassess pricing models, renegotiate contracts, and in some cases, entirely reimagine market strategy.
Producers Adapt with Measured Optimism
Badia a Passignano Antinori estate
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Renzo Cotarella, CEO of Marchesi Antinori, acknowledges the tariffs as a challenge—but not an insurmountable one. While a 20% duty at the point of entry is far from ideal, Cotarella estimates that the actual impact on shelf price could be closer to 6–7%, provided there's no compounding markup downstream. For wines positioned at a higher price point, he sees the added cost as something that can be absorbed—albeit with sacrifice—across the supply chain, from producers to importers and distributors. His outlook is measured: the situation isn't welcome, but it's manageable, and there remains hope that the tariff rate could ultimately be reduced.
'Certainly, these tariffs, coming right during Vinitaly, have not helped to frame the event in a positive light,' Cotarella said. 'I believe that, in some ways, there has been too much discussion about them, and we've missed an opportunity to celebrate wine for what it truly is: for the pleasure it brings, for the moments of joy it creates, and for the friendships it fosters.'
For Cotarella, the structure of Antinori's U.S. operations offers a layer of stability. With its own import company in place, the group can manage much of the impact internally—at least up to the distributor level. Still, he emphasizes that tariffs create a negative effect across the board. While larger, more diversified companies may be better positioned to absorb the blow, Cotarella cautions against viewing this moment as an opportunity to gain market share at the expense of smaller producers, calling that mindset a fundamental misstep.
Beyond Logistics: Reaffirming the Value of the U.S. Market
Giuseppe Vajra of GD Vajra shares a similarly grounded perspective. Like Antinori, Vajra's family estate has its own U.S. import company, offering a degree of control and insulation from short-term volatility. But beyond logistics, Vajra is deeply attuned to the emotional and cultural dimensions of the American market. 'We love American wine lovers,' he says, 'and we suffer when some colleagues say that 'the future is elsewhere' or that 'America is the past.'' For Vajra, the U.S. remains a place of curiosity, connection, and enduring passion for wine. At the same time, he cautions against letting fear or division define the industry's response. 'The tariff-retaliation dynamic reveals that in a community, no one can stay unscathed by passing all onus to the others,' he notes. 'Instead, I hope we stay united, supportive, and focused on what we do best—offering something meaningful to people's lives.' He added that this is no time to move slowly or freeze like a deer in the headlights. The priority, he emphasized, is taking action—decisive, practical steps to keep business moving forward.
A Panoramic Perspective: Terra Moretti's Strategic Patience
As the CEO of Terra Moretti, Massimo Tuzzi oversees a portfolio that spans some of Italy's most iconic wine estates—including Bellavista in Franciacorta, Petra in Suvereto, Teruzzi in San Gimignano, and Sella & Mosca in Sardinia. That range gives him a panoramic view of the Italian wine landscape and a sharp sense of how small shifts in pricing can ripple across categories and regions. For Tuzzi, the concern isn't just about short-term strategy—it's about pricing psychology. 'Once you lift the bar on price,' he says, 'it's very, very unpredictable. That price rarely goes back down.'
Sella & Mosca's Vermentino, which typically retails around $14.99 in the U.S., is particularly vulnerable to subtle increases. A $1 jump at retail may seem minor, but Tuzzi warns that it sets a new expectation—one the consumer ultimately bears. 'The real potential fallout is that retailers and restaurants may raise prices by just one or two dollars,' he says. 'But the likelihood that they lower them again is very slim.'
Still, Tuzzi isn't advocating panic. In fact, he's an advocate for measured response rather than immediate reaction. 'Many producers and importers want answers now,' he says. 'But I'm very much against reacting before we have all the elements on the table.' He recommends using the moment wisely—monitoring developments, protecting margin where possible, and avoiding knee-jerk decisions. 'Keep calm and take time to think through the elements in front of you,' he advises. 'This is a moment to think—not just move.'
A Window of Reprieve—and a Call for Clarity
That philosophy gained added weight on Wednesday, April 9, when the Trump administration unexpectedly announced a 90-day pause on new tariffs—excluding those on China—offering the Italian wine world a brief but meaningful window to gather information, reassess, and prepare. With continued uncertainty on the horizon, the consensus across producers, importers, and institutions seems to echo a single, unifying strategy: move quickly when needed—but think even faster.
Back to What Matters
In the end, while strategy, pricing, and policy will always play a role, the soul of the wine industry lies elsewhere—in connection, culture, and the shared joy of the product itself. As Renzo Cotarella put it: 'So, enough with tariffs. If they are confirmed, we will work to navigate them. But let's focus on what really matters: promoting wine, encouraging its responsible consumption, and continuing to ensure that it is seen as a fascinating, enjoyable product to be shared with friends on the right occasions.'
