Looming Tariffs Force US Importers to Stockpile Italian Prosecco
Surge in Prosecco 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.
Record-Breaking Imports
U.S. imports of Italian sparkling wine, 90% of which is Prosecco, skyrocketed by 41% in November, following Trump’s election, far exceeding consumer demand as importers filled the pipeline for future sales, according to the Union of Italian Wines trade association.
Uncertainty Drives Stockpiling
"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.
Wine Industry Concerns
"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."
Italy’s Exports at Risk
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. Last year, Italy’s wine exports to the U.S. totaled 1.9 billion euros ($1.97 billion).
Prosecco’s Rising Popularity
Prosecco became the top-selling Italian wine in the United States last year, representing nearly 40% of all sales.
Market Concerns
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. This outpaced modest single-digit increases to the next two markets, Britain and Germany, and far outpaced U.S. consumption, which rose just 0.6% in the period.
Conclusion
The surge in Prosecco imports is a clear indication of the industry’s concerns about the potential impact of tariffs on their business. As the trade situation remains uncertain, it is likely that importers will continue to stockpile Prosecco to mitigate any potential risks.
Frequently Asked Questions
- What is the current state of the Prosecco market?
- The Prosecco market is experiencing a surge in imports, with a 41% increase in November following Trump’s election.
- What are the reasons behind this surge?
- The surge is attributed to importers’ efforts to stockpile Prosecco as a hedge against potential tariffs and to ensure a steady supply chain.
- What is the impact of tariffs on the Prosecco industry?
- Tariffs could significantly impact the Prosecco industry, as it is heavily dependent on exports to the United States, which accounts for nearly one-quarter of Italy’s wine exports.
