Heavy financial burden: a fatal 2.3 billion hit for food and wine sector
The Italian agro-food industry, a key player in Italy's economy, is grappling with a substantial slowdown in exports to the United States, following the Trump administration's tariffs on certain Italian products. These tariffs, reaching up to 30%, have had a profound impact on categories such as cheeses, processed tomato products and jams, wines, filled pasta, and extra virgin olive oil.
The tariffs have been particularly detrimental to the Italian wine industry, which earns €1.9 billion from the US, a quarter of all exports. For every dollar spent on high-quality European goods, like wine, up to €4.50 is activated in the American economy, according to Giacomo Ponti, president of Federvini. However, the 30% tariff could effectively amount to an embargo, as defined by the president of Uiv, Lamberto Frescobaldi.
The Italian agro-food industry, the first manufacturing sector in Italy, had aimed to export €9 billion to the United States in 2020, with a goal to increase exports by €1.2 billion. However, these ambitions seem threatened by the tariffs, which could cost the industry €2.3 billion, as estimated by industry leaders.
Ettore Prandini, president of Coldiretti, the main agricultural organization in Italy, has criticized the lack of courage and strategic vision from Europe. He called on President Von der Leyen to push for a real solution, urging for negotiated agreements to alleviate the burden rather than purely retaliatory measures. Vincenzo Gesmundo, secretary-general, highlighted the ineffective EU response and the risks posed by the current asymmetrical trade relationship with the U.S.
The US is the second most important world market for Italian agro-food, behind Germany. Regions like Florence and the wider Tuscany region have been identified as particularly vulnerable, with Florence—the province most affected by these tariffs—estimating a loss of €580 million in export value to the U.S. within just three months.
Despite the challenges, there is an emerging effort to bolster agricultural trade relations. For instance, Italy is increasing its imports of U.S. soybeans under a new bilateral task force aiming to rebalance trade between the two countries.
Industry leaders, including Paolo Mascarino, president of Federalimentare, and Massimiliano Giansanti, president of Confagricoltura, have called for urgent and structural interventions to strengthen the competitive capacity of businesses. These interventions include streamlining bureaucracy, reducing energy prices, and facilitating access to credit.
In conclusion, the Italian agro-food industry is facing significant challenges due to the US tariffs, with key product categories bearing the brunt of these measures. The industry calls for a firm and decisive response from European institutions, underlining the complex interplay of trade policy, currency fluctuations, and geopolitics in the current environment.
[1] Source: La Repubblica [2] Source: ANSA [3] Source: Reuters
- The profound impact of the tariffs on certain Italian products, such as wines and cheeses, is causing concern in the Italian agro-food industry, with leaders like Ettore Prandini calling for a bold and strategic response from Europe.
- The US tariffs on Italian agro-food products have led to a potential loss of €2.3 billion for the industry, according to industry estimates, prompting calls for structural interventions to reduce energy prices, streamline bureaucracy, and facilitate access to credit.
- In the face of these tariffs, the Italian agro-food industry is not only dealing with financial implications but also the complex interplay of trade policy, currency fluctuations, and geopolitics, as noted in the conclusion of the General News report.
