ROME — American importers have been stockpiling Italian bubbly Prosecco as a hedge in opposition to the potential impression of tariffs threatened by President Donald Trump, wine trade knowledge present.
U.S. imports of Italian glowing wine — 90% of that Prosecco — skyrocketed by 41% in November, after Trump’s election, far exceeding shopper demand as importers crammed the pipeline for future gross sales, in accordance with the Union of Italian Wines commerce affiliation.
“It was fairly pure on the finish of the 12 months to do additional shipments,” stated the commerce affiliation president, Lamberto Frescobaldi, given the uncertainty over whether or not tariffs would hit Italian wines or not — and the chance shoppers would in the reduction of on such luxuries if tariffs made them too dear.
“Can we survive and not using a glass of wine? Sure. Wine is a pleasure,’’ Frescobaldi instructed The Related Press this week.
Italian wines weren’t hit by tariffs throughout the first Trump presidency, and no tariffs have been introduced to this point in opposition to European companions. Nonetheless, Prosecco importers and distributors are taking precautionary measures to guard the market.
Italy exports practically one-quarter of its wine to america, leaving the sector extra closely uncovered to potential tariffs than some other Italian export, in accordance with the commerce federation. Final 12 months, Italy’s wine exports to the U.S. totaled 1.9 billion euros ($1.97 billion).
Prosecco grew to become the top-selling Italian wine in america final 12 months, representing practically 40% of all gross sales.
The primary indicators of market concern confirmed up even earlier than Trump was elected, with Prosecco shipments to america rising 17% within the first 10 months of 2024. That compares with extra modest single-digit will increase to the subsequent two markets, Britain and Germany, and much outpacing U.S. consumption which rose simply 0.6% within the interval.
“It is a crucial determine that we didn’t count on,” stated Giancarlo Guidolin, president of Prosecco DOC consortium, the biggest of Italy’s three Prosecco-producing consortia. ”We predict there was a rise of product within the warehouse.”
One different issue within the increased deliveries could have been a threatened port strike in January, stated Dina Opici, chairwoman of the Wine & Spirits Wholesalers of America.
“That stated, clearly making an allowance for that there might be impending tariffs as effectively, I feel it most likely gave folks the next consolation degree in making that funding,” Opici stated.
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Silvia Stellaci in Rome and Colleen Barry in Milan contributed to this report.