Forget agreements: US tariffs are being paid by Italian wineries, squeezing profits

The bill for tariffs is heavier than expected, and it is being paid largely by businesses. This is highlighted by the Observatory of the Unione Italiana Vini, which has processed the latest data from US customs imports and uncovered the bitter truth: in July, Italian wine in the US arrived at a reduced average price (-13.5%) in order to remain competitive even once subjected to the burden of tariffs.

Value of the tariff on Italian wine

Reduced prices to stay competitive

The average list price of Italian wines therefore fell from 6.52 dollars/litre in July 2024 to 5.64 dollars in the same period this year, despite a phase of US dollar depreciation that should instead encourage Americans to spend more on purchases in euros. According to the Observatory, since the activation of the new tariffs at the end of July (three months), Italian wines have incurred additional duties amounting to 61 million dollars. Only France has fared worse, with 62.5 million dollars.

Average price of Italian wines at customs

The weight of tariffs on the shoulders of businesses

“We must highlight the significant sacrifice on margins that our companies are making in order to deal with US tariffs,” said the president of the Unione Italiana Vini, Lamberto Frescobaldi, who, just last week at the Masaf during the presentation of the harvest forecasts, had already warned against underestimating the weight of tariffs. The hoped-for three-way split (5% to companies, 5% to the US supply chain and 5% to the end consumer), also mentioned by the Minister of Agriculture Francesco Lollobrigida, has not materialised. Simply, Frescobaldi reveals, “wine is leaving the wineries at lower prices, and this shows that a large part of the companies are fully absorbing the duty in order to remain competitive.”

Tariff revenues by country

Speculation on prices underway in the US

But there is more: according to Uiv, paradoxically, unjustified price increases are being recorded on American shelves. “We have found that the products on the shelves are part of pre-tariff stocks accumulated in the early months of the year,” added the Uiv president. “It is therefore disappointing to witness increases that have no justification. Speculation by some, which does not help our businesses nor the US trade partners who also oppose the tariffs.”

Hence the association’s request to activate extraordinary promotion starting precisely from the US market as early as 2026. A reaction conceived under joint public-private coordination and based on the uniqueness of Italian wine, which, in addition to the United States, should also focus on promising markets such as the UK, Canada and Brazil.