3 days ago
Tuscan winemakers consider diverting exports after Trump tariff threat
Tuscan wine producers will divert more bottles of Chianti destined for the US to South America and Asia after Donald Trump's threatened 30pc tariffs on EU imports.
The US president is threatening to impose the punishing tariff on imports from the trading bloc from Aug 1 – including wine – which has sent shock waves through Italian vineyards.
Italy is the most exposed out of all the European wine-producing nations, with the US accounting for 24pc of all Italian wine exports, worth about €2bn (£1.7bn). The US accounts for around 20pc of French wine and 11pc of Spanish wine.
The Chianti Wine Consortium (CWC), which represents 3,000 vineyards, said Tuscan winegrowers will export more cases to places such as Brazil, Argentina and Uruguay as well as China, Japan and Vietnam to offset the tariff hit.
Giovanni Busi, president of CWC, said Tuscan winemakers would continue to ship to the US even if tariffs forced up prices but new markets were needed if demand dropped.
'With a 30pc tariff, we risk losing around 20pc of our market share ... There's no doubt that it would be wise to strengthen and expand them toward other countries, starting with those in Africa and South-east Asia,' he said.
'Americans will keep drinking Chianti, even if they have to pay a little more than they do now.
'There's no point in feeling sorry for ourselves: this should be seen as an opportunity to accelerate a new export strategy, targeting alternative, more stable markets.'
'Disastrous'
Chianti is one of Italy's most famed wine exports, named after the hilly Chianti region of Tuscany where the wine is made from Sangiovese grapes.
The CWC represents six provinces in Tuscany – Florence, Siena, Arezzo, Pisa, Pistoia, and Prato – a region which produces 100m bottles of wine a year.
Some Italian producers warned it will be difficult to redirect enough shipments quickly enough to offer relief to winemakers.
Unione Italiana Vini (UIV), which represents wine varieties across the country, said a 30pc tariff to ship into the US would amount to 'a near-embargo on 80pc of Italian wine exports'.
It said it was 'unrealistic' to think such volumes can be redirected elsewhere in the short term.
It added: 'At the same time, an extraordinary intervention from the EU will be absolutely necessary.'
Figures from the trade group suggest that the wines which are the most vulnerable to a downturn in US demand are Moscato d'Asti, Pinot Grigio, Chianti Classico and Tuscan reds.
On Monday, UIV secretary general Paolo Castelletti urged the EU to agree free trade deals with other nations quickly.
He said: 'There's no point in talking about market diversification while stalling on critical deals like [South American trade bloc] Mercosur. How can we expect to compete in Brazil or India, where import duties hit 27pc and 150pc respectively?'
It follows warnings from France over the weekend that threatened US tariffs would be 'disastrous' for the country's food industry.
François-Xavier Huard, head of dairy association FNIL, said Mr Trump's tariffs will be a 'real shock' for milk and cheese producers.
