Faced with 10% tariffs on wine sales in the US market, the Italian wine trade is taking action.
“Our stance is clear: we don’t passively wait. We act,” says Matteo Zoppas, President of ICE Agenzia - Italian Trade Agency (ITA).
A volatile situation
It’s been a wild ride for the European wine industry. In March, the EU threatened to retaliate against tariffs on aluminium and steel by slapping a 50% tariff on American whiskey. Trump immediately took to social media to threaten a 200% tariff against European alcohol. Although the EU dropped its threat, the mere possibility of 200% tariffs caused American importers to cancel orders, leaving cases piled in Italian warehouses. Then, on “Liberation Day” on 2 April, Trump announced a 20% tariff on European goods.
That would cause Italian wine revenues to fall by €323 million a year, according to Reuters; the US is the top destination for Italian wines, accounting for 10% of total Italian wine export value (€1.9 billion). Altogether, Italian wines have a 34% of the American market.
But on 10 April, the tariffs were paused until 9 July 2025, leaving the EU facing baseline tariffs of 10%, much to the relief of European wineries.
“Any limitation to free trade is, of course, a limitation. But 10% is better than 20%.”
“Any limitation to free trade is, of course, a limitation,” says Adolfo Rebughini, the General Manager of Veronafiere, the organiser of Vinitaly. “But 10% is better than 20%.”
Italy’s wine producers have benefited from the timing, possibly more than wine producers in other countries. The 20% tariffs were announced just before the Vinitaly wine fair took place in Verona, so both buyers and producers knew they had to make deals. With more than 3,000 American buyers in attendance, business was conducted on the basis that the tariffs would be much higher than they were. That the tariffs were smaller than expected has added a glimmer of optimism to the situation.
Still, the tariffs have had an effect, with trading conditions becoming more “cautious” according to Zoppas. “Smaller producers are slowing their expansion plans, while larger, more structured companies are reassessing their pricing strategies. There hasn’t been a generalised halt, but there’s clearly a prudent approach.”
Diversifying markets
Italy’s immediate action was to hold a roundtable in Washington D.C. on 1st May 2025, in conjunction with Veronafiere, the organiser of Vinitaly. Held at Cafe Milano, a Washington institution ("Where the world's most powerful people go," according to the New York Times), the roundtable brought together high-level figures from both the US wine and spirits industry and Italian officials, as well as importers, retailers and distributors.
As the discussion made clear, the stakes are high. "We are investing a lot to develop Made in Italy in all categories," said Rebughini. "But, of course, we have chosen wine as a main strategic category." He added that Italy has two significant targets, including €700 billion in exports generally, but €100 billion for agricultural products specifically.
The tariffs could have a major impact on those sales, and would probably hurt smaller producers the most.
"We talk about pricing starting at the customer level on the shelf," said Charles Lazzara, owner of Volio Imports. "A 10% tariff, although it might be $1, ends up being $3 on the shelf. Three dollars knocks you out of a price point, which means you might lose 30% of your market."
Roger Murray, the Senior Policy Advisor of Akin Gump Strauss Hauer & Feld law firm, said they understand that the US administration "has put together a template trade agreement, [and] that they are beginning to socialise with about 19 different governments." The administration has given itself a 90-day window, but "in general, most of the negotiations are not very far along," though there are some indications that Australia and the EU are further along than other governments.
“We need to stay as close and as focused as possible, to listen to market trends and make sure that we’re incorporating everything.”
He noted that lobbyists are trying to tell the story of how local restaurants, hotels, and wine shops make their communities richer, not just financially, but also as gathering places. Murray said that elected officials in Congress like to hear from local businesses, so he urged importers look for those relevant local businesses and encourage them to speak with their representatives.
The Italians are also creating a platform for the second edition of Vinitaly USA Chicago, which takes place in October, to bring actors in the market together to exchange information.
“We need to stay as close and as focused as possible, to listen to market trends and make sure that we’re incorporating everything,” says Rebughini.
They will also accelerate their efforts to find new markets.
Zoppas says that Canada represents a big opportunity, as declining demand for American wine has created shelf space. “Similarly, Mexico and Brazil are emerging as dynamic markets, with expanding wine cultures and growing demand for premium imported wines."
Veronafiere held its first fair in Kazakhstan in 2024, which it intends to repeat this year. India also looks promising.
However, Rebughini stresses that it’s not going to be easy, particularly for smaller producers. “The US is irreplaceable, whether you count volumes or revenues,” he says, with Italian exports up 6.5% compared to 2023.
“Every market that has a lot of potential also has a lot of risks. We want to be careful and stay close to the US as much as possible.”
On the American side
So far, says Rebughini, it’s smaller producers who are experiencing a slowdown, though he says many distributors ordered extra stock well in advance. And it will take time to see the true effects of the tariffs, as the dollar weakens and Americans have less purchasing power. “Then you’re going to have a real effect on Main Street.”
Rebughini says the American distributors are deeply worried about the impact of the tariffs. “Our greatest concern now is the volatility and uncertainty that is creating troubles for both producers, importers, distributors, and everybody else.”
“Our greatest concern now is the volatility and uncertainty that is creating troubles for both producers, importers, distributors, and everybody else.”
Speaking at the roundtable, Francis Creighton, President and CEO of Wine and Spirits Wholesalers of America, said it was critical for all players in the market to keep discussions open with one another and share as much information as possible. He encouraged producers to be in contact with their political representatives, to impress on them that wine is a special product. "Our product is not a piece of silverware or glassware. Our product is unique to an individual country," he said. "Help the administration understand that putting a massive tariff on your wine from Italy does not mean that I'm going to shift my purchasing to California wine. It means I'm going to get out of the category altogether."
Because, in the end, the tariffs won’t just damage European producers, but the US wine trade itself.
“For every dollar that we spend on imported wines, it generates over $4.50 of American revenue to American companies,” Harmon Skurnik, President of Skurnik Wines, told the Italian Wine Podcast. “So, the impact of tariffs is much greater on the American importers and the American distributors, retailers, restaurants, than it is on the targeted country,”
“These tariffs do tremendous damage to American businesses.” FC
