How Italian wines are affected by US tariffs

According to Nomisma Wine Monitor, in December, 2019 Italian wine sales decreased by 7% in value. In the same period France’s exports went down by 36%
How Italian wines are affected by US tariffs

It seemed that Italy was the big one excluded from tariffs imposed by Trump’s administration. These measures are affecting products coming from all the European Union, making the agri-food and wine sector tremble; especially winemakers from Spain, France, Germany, and the UK.

However, numbers coming from the USA are far from positive, for Italy as well. The latest Vinitaly-Nomisma Wine Monitor survey based on the new US customs numbers for 2019 shows how the trade war between the United States and Europe has created a series of negative dynamics in recent months. Italy is no exception. Its wine exports in December decreased by 7% in value compared to the same period of 2018 (still wines down by -12%).

EU producers are taking the blow. In the last 2 months France has seen its still wines sales fall by -36% and Spain by -9%. On the other hand, supplies from the ‘New Production World’ are flying, with New Zealand rising by +40% in value and Chile by +53%.

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This – explains the Head of Vinitaly Nomisma Wine Monitor, Denis Pantiniis a scenario of strong uncertainty in the main wine world markets, and this is a key factor to be addressed this year. The United States is delivering us a market that in 2019 has increased in global imports – probably even more than the real growth in consumption – due to an increase in stocks for precautionary purposes. Italy is also closing on growth, although it continues to maintain a lower than average price for still wines while sparkling wines are driving the sector’s sales.”

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The United States is one of the key markets for the wine sector. In 2019 alone, the USA imported wine for a total value of 5.55 billion euros, growing by 5.7% over 2018, thanks to the surge in demand for sparkling wines (+11.1%). Among the top suppliers come France (1.92 billion euros, up by +7.7%), and Italy (up +4.2% for a value of 1.75 billion euros). New Zealand’s performance is also excellent (+11.9).

We are witnessing a confused market – said VeronaFiere’s Director general, Giovanni Mantovanimarked by a race for stocks and great uncertainties at the same time. This certainly does not benefit trade, which has so far been very positive however, and we hope all will change as soon as possible. For this reason we are confident in the mission to the United States by the EU Commissioner for Trade, Phil Hogan, and in the optimism recently expressed by the Commissioner for Economy, Paolo Gentiloni. We hope to open the next edition of Vinitaly (19 to 22 April, 2020) in a renewed regime of trade peace with our historic trade partner.”

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