The consortium dedicated to safeguarding the renowned cured meat has recently secured approval for export to the USA from Italy. Sales in wine, anticipated to decline by as much as 16%, alongside fashion and pharmaceuticals, have experienced notable impacts. Coldiretti: “A multitude of employees face potential jeopardy.”
Writing on social media is effortless: congratulations to Donald Trump. It is quite common in our region as well. Perhaps they will be the first to lament the trade war that the President of the United States has unleashed upon the globe. Italy is included. Our automotive and pharmaceutical manufacturing will face significant challenges.
However, it is primarily our exports of clothing, pasta, cheese, cured meats, and beverages that stand out. Every item now faces new import duties in the US, reaching as high as 25 percent of their value. Responsibilities, indeed. However, concerning wine, this is the threat posed by Trump – they could escalate to 200 percent.
A rise in consumer sales prices that will marginalize the affluent American middle class. It will undoubtedly impact the supply chain for Italian producers. Consequently, they will inevitably have to reduce their workforce in response to the anticipated decline in revenue. This is what is set to unfold.
Reasons Behind Illy Caffè’s Consideration to Relocate Production to the United States
Affluent individuals in New York or Los Angeles looking to purchase a Ferrari are unlikely to be concerned about a 25 percent rise in price. In the realm of automotive excellence, one finds that there exists but a singular Ferrari brand globally. However, Prosecco, Brunello di Montalcino, Parmigiano, and even Tuscan finocchiona are likely to see a decline in market share as local alternatives emerge. These alternatives, produced within the United States, will undoubtedly be more affordable due to the absence of import duties.
Even Cristina Scocchia, the CEO of Illy Caffè, is contemplating relocating production intended for the American market to the United States in order to sidestep Trump’s tariffs. Moreover, the proliferation of counterfeit goods creates a perfect storm for the promotion of spurious Made in Italy products. From wine to Parmigiano: a mere tricolor label is all that’s required, and the flavor speaks for itself.
The central focus of the 2025 edition of Vinitaly, the esteemed trade fair taking place in Verona, is indeed noteworthy. “A tax of 200 percent on the product will inevitably result in the cessation of exports of many outstanding wines to the United States.” “It signifies the complete shutdown of a market,” elucidates Chiara Condello (featured above), a producer of Sangiovese di Romagna in Predappio, located in the province of Forlì-Cesena, to Dossier RavennaToday.
Prosecco, white wines, and Brunello: the United States emerges as Italy’s foremost customer
As Giulia Penta elucidates, a duty of 200 percent could potentially lead to a reduction in exports by as much as 80 percent. Donald Trump’s decisions are unlikely to have any significant impact on the Emilian Motor Valley; the allure of luxury vehicles will persist in drawing customers to brands such as Ferrari, Maserati, Lamborghini, Ducati, Pagani, and Dallara. The implications for the food sector will vary significantly. The standout Emilian-Romagnolo products making waves in the United States include Parmigiano Reggiano, which saw exports reach six thousand tons in just the first five months of 2024, alongside Solignano PDO cheese, extra virgin olive oil, pasta, and wine.
“The responsibilities will undoubtedly cripple the sector, particularly artisanal products that have historically faced elevated production expenses.” “Romagna, being the heartland of artisanal products, will find itself at a significant disadvantage,” remarks Laura Pedulli, who leads the agri-food sector in Forlì and Cesena for the National Confederation of Artisans. The United States stands as the foremost consumer of Italian wine, boasting a turnover of 1.9 billion euros from a total export figure exceeding 8 billion, with 22 million hectoliters of wine sold. Emilia Romagna boasts a remarkable 16,400 companies. We must also consider the endeavors of Veneto and Friuli Venezia Giulia. The precise effects on employment remain to be thoroughly assessed at this juncture. However, it is assumed if alternative commercial avenues are not identified.
Anticipated decline in wine sales could reach as much as 16 percent
It is estimated that, depending on the category, sales could see a decline of up to 5 percent, particularly for sectors that had already been affected by the loss of the Russian market following the sanctions imposed due to the invasion of Ukraine. However, when it comes to wine, we are looking at a reduction of 16 percent in comparison to the current sales share.
Trump’s latest threat to escalate duties to a staggering 200 percent has yet to be given any serious consideration. For it would undoubtedly result in a profound crisis. “A potential remedy for navigating the challenges posed by a saturated market such as that of the United States, as articulated by Lucio Miranda, the president of the consulting firm ExportUsa which aids Italian businesses, is to concentrate efforts on the less competitive regions of America, including Ohio, Indiana, Tennessee, and Kentucky, where exporting tends to be more manageable.”
One option is to expand the European market. As indicated by Roberto Bozzi, the CEO of Vulcaflex, a firm renowned for its expertise in car interior upholstery and luxury furniture, who also serves as the president of Confindustria Romagna. “What ought to be done,” Bozzi asserts, “is to urge Europe to increase consumption, elevate salaries, and foster a spirit of less competitiveness among ourselves.” The current perspective of Europe is rather limited, as it focuses primarily on enhancing its own condition without considering the broader implications for the global landscape. A monumental shift in the European mindset is essential.
President of Coldiretti: “Thousands of Jobs Hang in the Balance”
The identical issues pertain to Tuscan oil and wines. Letizia Cesani, the president of Coldiretti Toscana, has indicated that numerous jobs are under threat. The United States ranks as the second most popular destination for Tuscan agri-food products. “However, when it comes to wine and oil, it is indeed the first,” explains the president of Coldiretti. Tuscan agri-food comprises numerous small enterprises. It would jeopardize a constructive framework that has established export as its distinctive commercial approach. We’re not merely discussing the finest wines; we’re also considering those that are reasonably priced for the average consumer. Alongside millions of euros, thousands of employees and their jobs hang in the balance.
In the realm of Tuscan wines, a noteworthy 35 percent of the Chianti Classico production finds its way to the United States market. However, the most significant ridicule of Donald Trump’s economic policies is being endured by the makers of finocchiona, the traditional sausage crafted from minced pork, seasoned with fennel seeds and red wine. Francesco Bertolucci has reported in Dossier ArezzoNotizie that the Consortium for the protection of finocchiona Igp has recently secured approval to export the salami to the United States.
The Finocchiona Fiasco: Sanctioned and Now Taxed by Trump
“The authorization came through last summer,” explains President Francesco Seghi, “and it was the crowning achievement to mark a decade of our consortium’s activities.” We shall indeed be present at the trade fair in New York this coming June. We embark on this venture with great enthusiasm, despite the potential burden that duties may impose on the cost.
Should the matter find its way to the White House, one can only speculate how it might be interpreted as finocchiona in the presence of Trump. A matter of Tuscany resonates, the assonance in English with Tuscan names employed for the forgery of numerous Italian products. Counterfeits that, owing to the newly imposed duties, might supplant the authentic products.
The United States leads the export rankings for Abruzzo as well, accounting for 17 percent of the total, which amounts to a staggering one billion and 626 million, as noted by Monica De Panfilis in Dossier Pescara. Wines and agri-food are at the forefront. Moreover, the manufacturing sector, encompassing pharmaceuticals and mechanics, witnessed a remarkable surge in exports to the US in 2024, boasting an impressive increase of 160 percent compared to the previous year. And in spite of the looming threat that years of effort may be undone by the tariff conflict, not all are succumbing to despair.
Pharmaceuticals, fashion, and leather goods: the firms affected by Donald Trump
“The implications of tariffs should not be interpreted in a singular manner – contends Alessandro Addari, vice president of Confindustria Abruzzo Medio Adriatico – as the actions taken by Trump against various nations might, in a rather ironic twist, present a potential benefit.”
Upon returning to Tuscany, there are growing concerns regarding the fashion sector. The pharmaceutical sector currently accounts for 39.9 percent of all exports to the United States. The responsibilities may consequently impact American citizens, potentially leading to drug shortages and rising prices, as noted by Francesco Bertolucci in Dossier FirenzeToday.
However, in Tuscany, it is fashion that faces the most significant perils. American consumers are set to face increased costs, with duties ranging from 10 to 20 percent on the value of goods. This translates to an additional expenditure of between 14 and 24 billion dollars for clothing, and an increase of 6.4 to 10.7 billion dollars for footwear. “The United States is absolutely essential for us,” reveals Claudia Sequi (photo above), president of Assopellettieri. At every tier, from modest enterprises to major brands, the responsibilities would be jeopardised.
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