Italian Wine Exports Fall Under U.S. Tariffs

Italy’s wine industry is moving to blunt the effect of U.S. tariffs by pushing harder into Europe and a set of new markets opened by recent trade agreements with Mercosur, India and Australia, as exporters face weaker sales in their biggest overseas market.

The pressure is already visible in the numbers. Italian wine exports to the United States fell 9.2% after tariffs imposed by President Donald Trump, cutting €178 million from sales. That drop helped pull total Italian wine exports down 3.7% in 2025, to €7.78 billion, according to figures cited during Vinitaly, the annual wine fair in Verona that ran through April 15 at VeronaFiere.

For a sector that sends one out of every two bottles abroad, the loss of the U.S. market is especially serious because the country is not only the world’s largest wine market by consumption but also one of the few that can absorb premium labels at scale. Industry executives say shifting unsold bottles to other countries may be possible, but replacing the revenue is much harder. As long as tariffs remain in place, they say, diversification is the only practical response.

The damage has not been limited to the United States. Italian wine exports to non-European Union markets were broadly weaker in 2025. Sales fell 3.9% in the United Kingdom, 5.9% in Canada, 4.2% in Switzerland and 16% in Russia. Brazil was the only major non-EU market to show growth, with exports up 3.8%.

Europe offered a more stable picture. Germany, Italy’s largest single market in the region, held nearly flat at 0.6%, reaching €1.1 billion in imports of Italian wine. France rose 3.6%, and the Netherlands increased purchases by 5.6%. The European Union as a whole grew 0.7%, helping offset losses elsewhere and reinforcing its role as what analysts at the Uiv-Vinitaly Observatory called a “safe harbor” for Italian wine.

That role has become more important over time. Between 2019 and 2025, the value of Italian wine sales across the 26 EU countries rose 31%, nearly twice the pace seen in non-EU markets. Sparkling wines led that expansion, climbing 72% over the period and generating €822 million in revenue. Thirteen of the 26 EU countries recorded triple-digit growth rates for Italian sparkling wines.

France has now overtaken Germany as the top European buyer of Italian sparkling wine, driven largely by Prosecco sales in a market long associated with Champagne. Belgium and the Netherlands each posted gains of about 60%, while Austria rose 41%. In Eastern Europe, Poland increased imports by 74% and the Czech Republic by 113%.

At Vinitaly, industry leaders said those trends point to a broader shift in strategy: defend established markets while building new ones where tariffs are lower or likely to fall. Early this year, trade agreements between the European Union and Mercosur, India and Australia created fresh openings for exporters looking beyond the United States.

Giacomo Ponti, president of Federvini, told Il Sole 24 Ore that Mercosur countries offer a more favorable environment because of their large populations with Italian roots, strong restaurant culture and existing demand for Italian products. He said exports to South America have been held back by high tariffs and still fall short of their potential.

India presents a different challenge because wine remains a niche product in a market dominated by spirits such as whisky and gin. Ponti said Italian producers will need to invest in education and marketing aimed at India’s growing middle class, including efforts to pair wine with local cuisine.

Australia poses another test because it is itself a wine-producing country. Ponti said he welcomed the commercial terms of the agreement with Canberra but was less satisfied that Australian producers will be allowed to use names such as Grappa and Prosecco for ten years. Even so, he said Australia could still offer room for growth because of its large Italian immigrant community, especially in Melbourne.

For now, though, Europe remains the most reliable outlet for Italian wine as exporters adjust stock levels and sales plans around tariffs that continue to reshape global trade flows.