On one side, duties applied and announced, on the other, duties threatened. The war of additional “super taxes” on products as varied and dissimilar as ever, risks sending entire sectors of our economies into a tailspin: not only the European and Italian ones, but also by extension and with heavy consequences, those of America, China and the rest of the world.
Narrowing the field to the agri-food sector, we are already at the showdown. Putting the dates in order: the 25% duties imposed by the Trump administration on steel and aluminum made in the EU came into force on March 12. The announced response from Brussels will be triggered in two phases: from April 1 (with the countermeasures decided in 2018 and 2020 and then suspended following an agreement) and from April 13. Counter-tariffs in total for 26 billion euros on various American products. Among these , also 50% duties on the import of whiskey and bourbon made in the USA into the countries of the European Union. Let us clarify that in this case we are talking about additional taxes announced by Brussels and not yet in force. But the response from Washington was equally immediate.
Today Donald Trump on Truth: “The European Union, one of the most unjust and hostile authorities on taxes and duties in the world, formed for the sole purpose of taking advantage of the United States of America, has just imposed an obnoxious 50% tariff on whiskey. If this tariff is not removed immediately, the United States will shortly impose a 200% tariff on all wines, champagnes and spirits coming from France and other European Union countries. This will be great for American wine and champagne companies.”
Words that have had the effect of a tornado on the entire Italian wine supply chain. Lamberto Frescobaldi, president of the Italian Wine Union, speaks of wine as a “symbol of friendship between two peoples,” Italy and the United States. How much would the additional price to pay be, if we can talk about price?
“With duties at 200% – which we don’t want to believe in, at least as much as we don’t believe in monsters – Frescobaldi comments – the EU would lose about 4.9 billion euros in exports , or the total amount of exports directed overseas. But the entire American wine & food industry would also lose, because for every euro of imported wine purchased, 4.5 are generated in favor of the US economy”.
According to the Uiv Observatory, Italy sent 24% of its total global exports to the US last year, for a value of 1.93 billion euros (+10% on 2023), which would be completely eliminated in the case of 200% duties. And there would be a cascade effect with thousands of jobs at risk in the wine sector.
Coldiretti is also concerned, underlining that 200% duties would be an ” extreme measure that would actually cause Italian wine to suffer, compromising a path that in the last twenty years has seen sales in the United States almost triple in value, with an increase of 162%”. Let us remember that the USA is also the world’s leading consumer of wine with 33.3 million hectoliters, according to OIV data, and for Italy it represents the most important market in value.
“I believe that common sense is needed on both sides ,” adds the CEO of Filiera Italia , Luigi Scordamaglia . Trump’s threat is linked to Europe’s confirmation of the 50% duty on American whiskey. The EU Commission should demonstrate good will by continuing to avoid this duty with the existing moratorium, thus safeguarding European wine and spirits. Someone must start showing some common sense, and Europe should be the first to do so”.
Federvini, the main Italian association of wine and spirits producers, speaks of dramatic effects on the entire “spirits” supply chain. “Transatlantic duties that, if actually introduced, would evidently be unsustainable and the tariff escalation would have disruptive effects on both sides of the Atlantic”.
Federvini, in line with the positions expressed by the European associations of the sector, reiterates the importance of “keeping wines and spirits out of these commercial disputes that do not concern the agri-food sector”.
A couple of thoughts:
The first. The super duties by the USA on the wine and agri-food sector have been announced so far and not yet actually applied. A sign that they want to leave time and space for negotiations on both sides of the Atlantic.
The second. Trump explicitly mentioned the upcoming introduction of ” 200% duties on all wines, champagnes and alcoholic products arriving from France and other European Union countries”. He did not explicitly mention Italy, which is the leading exporter of wines to the US by volume, but France, also threatening Champagne, the flagship product of our cousins across the Alps. Does that mean something? Of course, as a major wine producer, we cannot think of escaping the storm of super duties so easily, but perhaps it is a sign of the green light for negotiations that are, let’s say, “personalized” country by country.
Meanwhile, speaking of the “beverage” sector, the first effects were also felt on the stock market where, after Trump’s announcement, the Campari group lost 4.31%.