American Importers Stockpile Italian Prosecco Amid Tariff Fears
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.
Surge in Imports
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.
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 Perspective
“Can we survive without a glass of wine? Yes. Wine is a pleasure,’’ Frescobaldi told The Associated Press this week.
No Tariffs Announced
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’s Wine Exports
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 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. 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.
Port Strike 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.
Conclusion
In conclusion, American importers are stockpiling Italian Prosecco as a precautionary measure against potential tariffs, driven by uncertainty and market concerns. While no tariffs have been announced, the wine industry is taking proactive steps to protect the market and ensure a steady supply of Prosecco to the United States.
FAQs
Q: Why are American importers stockpiling Italian Prosecco?
A: American importers are stockpiling Italian Prosecco as a precautionary measure against potential tariffs, driven by uncertainty and market concerns.
Q: What is the current situation with tariffs on Italian wines?
A: No tariffs have been announced to date against European partners, including Italy.
Q: How much of Italy’s wine is exported to the United States?
A: Italy exports nearly one-quarter of its wine to the United States, making it the sector most heavily exposed to possible tariffs.
Q: What is the current market share of Prosecco in the United States?
A: Prosecco became the top-selling Italian wine in the United States last year, representing nearly 40% of all sales.
