Italian producers of popular food products such as Parmesan cheese and olive oil are rushing to ship their goods to the United States in anticipation of potential tariffs from the incoming Trump administration.
The concern is that these tariffs could lead to higher prices and dampen American demand for these delicacies. In 2023, the U.S. imported €4.4 billion worth of Italian food, wine, and spirits, and producers are worried that tariffs could disrupt this lucrative market.
To address these concerns, producers are increasing their shipments to the U.S., with some even facing challenges in finding enough refrigerated cargo space. Filippo Marchi, the general manager of Granarolo, a dairy company, has highlighted the production bottlenecks associated with cheeses like Parmigiano Reggiano and Grana Padano, which require long maturation times. This limits the ability to quickly increase output to meet the high demand and limited shipping capacity.
Despite these challenges, Italian producers remain hopeful that the Trump administration may reconsider its tariff plans, as the U.S. market is crucial for Italian agrifood exports. The potential for tariffs has already led to a significant increase in Italian food and wine exports to the U.S. in the first half of 2024.
Italian producers are also concerned about the impact of tariffs on the wine sector and consumer behavior. While some winemakers are rushing to front-load exports, others are being more cautious due to the saturation of the U.S. wine market. The uncertainty surrounding tariffs has led to U.S. wine traders preemptively raising prices, affecting the entire supply chain.
Italian producers are aware that higher prices could drive American consumers towards cheaper domestic substitutes, potentially undermining the reputation of genuine Italian goods in the U.S. market.