Looming Tariffs Force US Importers to Stockpile Italian Prosecco
Italian Wines See Sharp Increase in US Imports
American importers have been stockpiling Italian bubbly Prosecco as a hedge against the possible impact of tariffs threatened by President Donald Trump, wine industry data show.
Uncertainty Drives Stockpiling
U.S. imports of Italian sparkling wine — 90% of that Prosecco — skyrocketed by 41% in November, after Trump’s election, far exceeding consumer demand as importers filled the pipeline for future sales, according to the Union of Italian Wines trade association.
"It was quite natural at the end of the year to do extra shipments," said the trade association president, Lamberto Frescobaldi, given the uncertainty over whether tariffs would hit Italian wines or not — and the likelihood consumers would cut back on such luxuries if tariffs made them too pricey.
Italy’s Exports at Risk
Italian wines were not hit by tariffs during the first Trump presidency, and no tariffs have been announced to date against European partners. Still, Prosecco importers and distributors are taking precautionary measures to protect the market.
Italy exports nearly one-quarter of its wine to the United States, leaving the sector more heavily exposed to possible tariffs than any other Italian export, according to the trade federation. Last year, Italy’s wine exports to the U.S. totaled 1.9 billion euros ($1.97 billion).
Prosecco’s Growing Popularity
Prosecco became the top-selling Italian wine in the United States last year, representing nearly 40% of all sales.
Pre-Tariff Stockpiling
The first signs of market concern showed up even before Trump was elected, with Prosecco shipments to the United States increasing 17% in the first 10 months of 2024. That compares with more modest single-digit increases to the next two markets, Britain and Germany, and far outpacing U.S. consumption, which rose just 0.6% in the period.
"It is an important figure that we did not expect," said Giancarlo Guidolin, president of Prosecco DOC consortium, the largest of Italy’s three Prosecco-producing consortia. "We think there was an increase of product in the warehouse."
Port Strike and Tariff Concerns
One other factor in the higher deliveries may have been a threatened port strike in January, said Dina Opici, chairwoman of the Wine & Spirits Wholesalers of America.
"That said, obviously taking into consideration that there could be impending tariffs as well, I think it probably gave people a higher comfort level in making that investment," Opici said.
Conclusion
The stockpiling of Italian Prosecco is a precautionary measure taken by importers to mitigate the potential impact of tariffs on the market. With Italy exporting nearly one-quarter of its wine to the United States, the sector is heavily exposed to the risk of tariffs. While Prosecco’s popularity continues to grow, the uncertainty surrounding tariffs remains a concern for the industry.
FAQs
- What is the reason for the surge in Prosecco imports?
The surge in Prosecco imports is attributed to the uncertainty surrounding potential tariffs and the likelihood that consumers may cut back on luxury goods if tariffs make them too expensive. - How does the US import market for Italian wine look?
The US import market for Italian wine is heavily exposed to the risk of tariffs, with Italy exporting nearly one-quarter of its wine to the US. - What is the current market share of Prosecco in the US?
Prosecco accounted for nearly 40% of all Italian wine sales in the US last year. - What is the impact of the threatened port strike on Prosecco imports?
The threatened port strike in January may have also contributed to the surge in Prosecco imports, as importers sought to stockpile supplies in anticipation of potential disruptions.
