American importers have initiated a Prosecco stockpiling frenzy in response to potential tariffs on European goods, leading to a substantial 41% increase in Italian wine imports to the United States.
At a Glance
- U.S. imports of Italian wine surged 41% following Trump’s election
- Prosecco accounts for 90% of these increased imports
- Italy exports nearly 25% of its wine to the U.S., valued at 1.9 billion euros
- Importers are stockpiling to hedge against potential tariffs
- The Italian fashion industry is also concerned about possible trade restrictions
Surge in Italian Wine Imports
In the wake of President Trump’s election and his threats of new tariffs on European goods, U.S. importers have dramatically increased their Italian wine imports.
But it’s probably completely unnecessary.
This sudden stockpiling trend, particularly with regards to Prosecco, reflects a strategic move by American businesses to safeguard against potential trade restrictions. The import increase reached a staggering 41% in November, with Prosecco making up 90% of these imports.
Italy’s wine industry, which exports nearly a quarter of its production to the United States, finds itself particularly vulnerable to these potential tariffs. Last year, Italian wine exports to the U.S. were valued at 1.9 billion euros ($1.97 billion), underscoring the significant economic stakes involved in this trade relationship.
Prosecco has emerged as the top-selling Italian wine in the U.S., accounting for nearly 40% of all sales. This popularity has only intensified in recent months, with Prosecco shipments to the U.S. increasing by 17% in the first 10 months of 2024, despite only a marginal 0.6% rise in U.S. consumption. This discrepancy between shipments and consumption clearly indicates stockpiling behavior among importers.
“Americans are not willing to give up on our wines,” Lamberto Frescobaldi, President of the Italian Wine Producers’ Association, said.
The Wine & Spirits Wholesalers of America noted that the threat of potential tariffs provided importers with a higher comfort level for increased investment in stockpiling. This cautious approach demonstrates the industry’s determination to maintain a steady supply of Italian wines, regardless of potential trade hurdles.
Broader Economic Implications
The concern over potential tariffs extends beyond the wine industry. Italy’s fashion sector, the country’s second-largest industry, is also bracing for possible trade restrictions. This industry generates 5% of Italy’s GDP and employs 1.2 million people, with exports of luxury fashion goods to the U.S. valued at 4.6 billion euros in the first 10 months of the previous year.
“If Trump penalizes the second industry in Italy, it is a pretty hostile declaration,” Carlo Capasa, President of the Italian National Fashion Chamber, said.
Hostile? This is about fairness.
President Trump has been vocal about his intentions to address what he perceives as unfair trade practices by the European Union.
“It will definitely happen with the European Union. I can tell you that because they’ve really taken advantage of us,” Trump stated, criticizing the EU for not importing enough U.S. goods, particularly cars and farm products.
While the feared tariffs have not yet materialized, the wine industry remains vigilant.
The reality here, however, is that America wants Italian wine and Italy wants to sell it to us. That means we’ll likely make a deal before the tariffs even begin to have an impact.
