U.S. tariffs hammer Italian wine exports

Italian wine exports lost ground in 2025 after new U.S. tariffs on imported wine and spirits took hold, and the drop has deepened in early 2026, according to Federvini, the Italian trade group for wine and spirits.

Federvini said exports of Italian wine fell 3.6% in value last year, a decline of nearly €300 million, citing research from its observatory with Nomisma and TradeLab. The heaviest setback came in the United States, Italy’s largest foreign market for wine, where shipments fell 12% after the tariff changes began. In the first two months of 2026, the decline in U.S. shipments widened to 34%, a sign of how quickly the duties have weighed on one of the country’s most important export outlets.

The figures were presented at an event linked to Vinitaly in Verona, where industry leaders and Italian officials framed the U.S. tariffs as a serious commercial challenge but also as a reason to speed up efforts to diversify export markets. Giacomo Ponti, Federvini’s president, said the sector needed closer coordination with public institutions as producers adapt to a more uncertain trade environment.

“We are standard-bearers of Made in Italy, and we have a duty to look ahead with a positive spirit,” Ponti said.

The meeting brought together Adolfo Urso, Italy’s minister for enterprises and made in Italy; Marcello Gemmato, undersecretary of health; Matteo Zoppas, president of the Italian Trade Agency; and Paolo De Castro, a member of the European Parliament. Their presence underlined how closely the wine issue is tied to trade policy, export promotion and the broader image of Italian food and drink abroad.

Federvini said Italy has performed better than several other major wine-producing countries in the same period, even as its own numbers weakened. According to the group’s analysis, French wine exports fell 4.4%, Spain’s declined 5.1%, Chile’s dropped 10.2%, and U.S. wine exports were down 36%. Those comparisons suggest that the slowdown is hitting a wide range of producers, but they also highlight how exposed Italy remains to changes in American trade policy.

For beverage companies, the impact goes beyond export totals. A prolonged squeeze in the United States could force importers, distributors and producers to rethink pricing, product mix and market priorities. Companies may try to protect sales by moving consumers toward different price points, trimming shipments of slower-moving labels, or shifting more attention to countries where tariff barriers are falling. That kind of adjustment would not be limited to wine. It could also affect spirits portfolios and the broader structure of drink imports tied to Italian brands.

Federvini’s data also pointed to a split inside the domestic market. In Italian grocery retail, wine sales held steady at roughly €3 billion in value, but volumes fell 2.8%, suggesting consumers are buying less while maintaining spending. Sparkling wine continued to outperform the broader category, with volumes up 3.1%. That pattern is consistent with a market where shoppers remain willing to pay for categories seen as more celebratory or more versatile for casual consumption.

The picture was weaker in restaurants, bars and other out-of-home venues. Federvini said wine consumption in those channels fell 6.6%, even though the wider market was worth €102 billion and still posted 1.5% growth in value overall. Sparkling wines again showed greater resilience, slipping 2.3%, a smaller decline than the category as a whole. Albiera Antinori, who leads Federvini’s wine group, said the domestic market is increasingly rewarding quality, experience and regional identity.

That shift matters for producers facing pressure abroad. If export volumes soften and on-premise demand at home also weakens, wineries may lean harder on premium positioning and stronger regional branding to defend margins. It also raises the stakes for appellations and other geographic identities that help Italian wines stand out in crowded retail shelves and restaurant lists.

With the U.S. market under strain, Federvini said Italian producers are looking more closely at new trade openings backed by the European Union. One of the main targets is the Mercosur bloc. The provisional entry into force of the EU-Mercosur agreement on May 1 is expected to give exporters improved access to a market of about 260 million people with a combined gross domestic product of roughly $3 trillion. Federvini said wine imports in that region have risen 45% over the past five years, and Italy already holds an 8% share there, supported by demand for red wines from Tuscany and Piedmont.

India is also emerging as a priority. Federvini said federal wine tariffs there are set to fall from 150% to between 20% and 30%, a change that could alter trade flows in a country of 1.47 billion people. The group said Prosecco sales in India have already grown 165%. If those tariff reductions are fully implemented and sustained, they could give Italian exporters a rare chance to expand in a large market at the same time they are losing momentum in the United States.

A separate agreement with Australia removes tariffs entirely and opens access to a market that Italian producers view as high value, with wine imports worth more than €540 million. Industry officials said such deals can create meaningful opportunities, but they do not resolve a long-running concern for exporters: the need for stronger legal protection abroad for geographic indications tied to regional names and labels.

That issue has become more urgent as producers push into new destinations. For many Italian wineries, the commercial value of names linked to specific places is central to how their bottles are marketed and priced. Wider access to foreign markets may help offset losses caused by U.S. tariffs, but executives say that access is less useful if regional identities are not fully protected in law and in practice.

The latest data leave Italy’s wine sector trying to manage two pressures at once. On one side, it faces a steep fall in shipments to its biggest overseas market after the U.S. tariff changes. On the other, it is trying to open new lanes for growth in South America, India and Australia while responding to changing drinking habits at home, where sparkling wines have been more resilient than still wines and value has held up better than volume.