A lethal 2.3 billion hit on the food and wine industry due to taxes
The Italian food industry is facing a challenging period as the European Union prepares to respond to President Trump's proposed 30% tariff on EU products, including Italian food and beverages. The European Commission, in a firm stance, has warned that these tariffs would disrupt essential transatlantic supply chains and harm businesses, consumers, and patients on both sides of the Atlantic.
In response, the Italian agro-food sector, the first manufacturing sector in Italy, has strongly condemned the tariffs. Emanuele Orsini, president of Confindustria, representing Italian manufacturing and service companies, called the US approach "unpleasant." Paolo Mascarino, president of Federalimentare, the Italian food and drink industry federation, emphasized that the tariffs "exceed any threshold of tolerability" and would cause significant declines in Italian food and beverage exports to the United States.
Italy's agricultural associations, represented by Coldiretti's president, Ettore Prandini, and Confagricoltura's president, Massimiliano Giansanti, have also voiced their concerns. Prandini urged President Von der Leyen to commit to a solution, criticizing the European Union's lack of courage and strategic vision. Giansanti considered the 30% tariff unacceptable and called for unity in negotiations to find a solution that doesn't harm the economy or productive systems.
The proposed tariff is estimated to cost approximately 2.3 billion euros, a figure that the industry finds untenable. Moreover, the combined impact of tariffs and the devaluation of the dollar is not considered sustainable for several sectors, according to Mascarino. In 2019, Italian food and beverages earned 7.8 billion euros from exports to the United States and aimed to reach 9 billion this year.
For the US wine industry, which earns 1.9 billion euros from Italy, a 30% tariff would be equivalent to an embargo, as defined by the president of Uiv, Lamberto Frescobaldi. He finds it unthinkable to place the current wine volumes elsewhere in the short term.
The Italian food businesses are asking for urgent and structural interventions to strengthen their competitive capacity. These interventions include streamlining bureaucratic burdens on businesses, reducing energy prices, and facilitating access to credit. The EU has already adopted a retaliatory tariff list targeting several US products, to take effect if no deal is reached by the August 1 deadline set by Trump.
The situation is dynamic, with ongoing negotiations and preparations for retaliation by the EU if the tariffs come into effect as threatened. The Italian food industry is hopeful for a resolution that preserves their competitive edge in the global market.
- The Italian food industry, in a bid to maintain its competitive edge, has requested urgent and structural interventions, such as streamlining bureaucratic burdens, reducing energy prices, and facilitating access to credit.
- In the realm of general-news, the ongoing negotiation between the EU and US over proposed tariffs on Italian food and beverages has generated concern within the agro-food sector, with business leaders cautioning that these tariffs would severely impact their exports to the United States, potentially exceeding a loss of 2.3 billion euros.
