President Donald Trump announced a reciprocal 20 percent tariff on EU goods entering the US, and Italian wineries are bracing for impact in one of their biggest markets.
According to Lamberto Frescobaldi, chairman of the Italian winegrowers association Unione Italiana Vini, revenues could drop by around 323 million euros (about 368 million US dollars) per year under the new levies.
Take Ca' Montebello in the Oltrepò Pavese region of northern Italy. It exports over 90 percent of its production to the US. Alberto Scarani, the third-generation heir of the family winery, notes the tariff will hit low-priced bottles hardest. 'It's changing a lot, especially for cheap wine,' he explains, adding that consumers balk at paying more for budget selections.
With prices set to rise, wineries hope EU negotiators will find a way to roll back or soften the duties before they become law. Until then, producers from Piedmont to Sicily are weighing how to protect margins and maintain a foothold in a key export market.
Reference(s):
cgtn.com
