U.S. importers prosecco panic
ROME, Italy—President Donald Trump’s threats to impose new tariffs on European goods has caused Americans to suddenly stockpile their favorite Italian wines – especially the sparkling wine, prosecco.
US imports of Italian wine – 90% of that Prosecco – skyrocketed by 41% in November following Trump’s election, according to the Union of Italian Wines trade association.
Lamberto Frescobaldi, the president of the trade association says the data is clear: “Americans are not willing to give up on our wines.” This peak in orders is unprecedented in the history of Italy’s sparkling wine exports for the month of November, the association says.
President Trump says the European Union will be next in line, after his decision to impose stiff new tariffs on Mexico, Canada and China.
“It will definitely happen with the European Union. I can tell you that because they’ve really taken advantage of us,” Trump told reporters on Sunday.
He complained the EU doesn’t importing enough goods from the US. “They don’t take our cars; they don’t take our farm products. They take almost nothing, and we take everything from them.”
Almost one-quarter of its Italian wine exports are to the United States, according to the trade federation. Last year, Italy’s wine exports to the U.S. totaled 1.9 billion euros ($1.97 billion) according to Frescobaldi.
Italian wine growers are not the only ones concerned about the possible new tariff regime. The head of Italy’s fashion chamber has appealed to the Italian government to do what it can to protect the country’s second-largest industry.
Fashion generates 5% of Italy’s GDP and employs 1.2 million people. Italy exported 4.6 billion euros worth of luxury fashion — apparel, leather goods, jewelry, eye glasses and footwear — to the United States during the first 10 months of last year.
“If Trump penalizes the second industry in Italy, it is a pretty hostile declaration,” Carlo Capasa, the president of the Italian National Fashion Chamber said this week.
Frescobaldi of the Union of Italian Wines is also worried. In a statement posted on the trade association’s website, he appealed to Italian authorities to give “maximum attention” to the threat of US import tariffs, warning that this matter could prove to be “decisive for the commercial future of wine.”
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