Italian Wine Exports to U.S. Drop by 110 Million Euros Amid Tariffs and Weak Retail Demand

The Italian Wine Union (Unione Italiana Vini, UIV) held its National Council meeting this week, bringing together key figures from the Italian wine industry to discuss current challenges and strategies. The meeting took place against a backdrop of ongoing trade tensions with the United States, particularly regarding tariffs introduced during the Trump administration.

Lamberto Frescobaldi, president of UIV, addressed the impact of these tariffs on Italian wine exports to the U.S. He noted that unless there are unexpected policy changes, the industry will have to continue dealing with these tariffs. Frescobaldi highlighted that Italian and European wine producers have been absorbing much of the cost to remain competitive in the American market. In the third quarter, the average price of Italian wine exported to the U.S. dropped by 15 percent, while French wine saw a 26 percent decrease. At the same time, retail prices for these wines in the U.S. increased by about four to five percent in October. Orders from American retailers ahead of Thanksgiving remained weak.

The financial impact has been significant. Nearly 110 million euros in export value was lost in the last quarter compared to the same period last year. Frescobaldi urged industry members to avoid both pessimism and unwarranted optimism, emphasizing the need for crisis management. He welcomed the Italian government’s allocation of 100 million euros for promotion in its budget bill, calling it a positive step as long as wine remains a priority sector for support.

Frescobaldi also sent a message to U.S. trade partners, warning that no part of the supply chain should seek profit at the expense of others during this difficult period. He stressed that restoring consumption and stabilizing prices is essential. He pointed out that while every dollar invested in European wine used to generate $4.50 in returns on the U.S. market, this multiplier effect could now reverse, potentially resulting in losses for American businesses far greater than those faced by European exporters.

The council also discussed broader export trends and regulatory issues affecting Italian wine producers. According to UIV’s observatory, exports to non-EU countries have declined, with a 14 percent drop in value during the third quarter and a cumulative decrease of 5.7 percent over the first nine months of this year. This decline underscores the importance of additional funding for Italy’s trade agency (ICE) to support market diversification and long-term growth.

Looking ahead to negotiations in Brussels on the EU’s “Wine Package,” UIV expressed hope that promotional funding rules would be extended from three years to ten years for activities targeting specific countries. The council also reiterated its opposition to using existing funds—without additional resources—to finance vineyard removals, a measure previously tried unsuccessfully in 2009 at a cost of one billion euros.

On another front, UIV called for swift approval of an interministerial decree on dealcoholized wines, which has been pending with Italy’s General Accounting Office for about two months. The council argued that Italian producers need this regulation finalized so they can compete on equal terms with other European producers who have benefited from EU rules since December 2021.

The meeting reflected growing concern within Italy’s wine sector about international competition, shifting regulations, and market volatility. Industry leaders are urging coordinated action from both government and private stakeholders to protect one of Italy’s most important export industries during a period of uncertainty and change.