U.S. tariff uncertainty "big killer": say Italian food, wine producers-Xinhua

U.S. tariff uncertainty "big killer": say Italian food, wine producers

Source: Xinhua

Editor: huaxia

2025-04-12 21:31:00

ROME, April 12 (Xinhua) -- The shifting tariff policies from Washington are creating major uncertainty for Italian food and wine producers, who say the lack of predictability is making it increasingly difficult to plan for the months ahead.

In recent interviews with Xinhua, several producers expressed concern following U.S. President Donald Trump's announcement last week of new so-called "reciprocal" tariffs. The measures include a baseline 10-percent levy on all imports, with higher rates applied to certain trading partners. The announcement triggered turbulence in global stock markets and raised alarm among international exporters.

Just one week later, Trump declared a temporary 90-day pause on some of the tariffs for most countries-excluding China-while maintaining the 10-percent base rate.

Giovanni Mastropieri of Latteria Santo Stefano, a Parmesan cheese producer based in the northern Italian region of Emilia-Romagna, said the tariffs, along with the uncertainty surrounding them, could present the most significant challenge the sector has faced in recent years.

"After years of pandemic and regional conflicts, now come the tariffs," Mastropieri told Xinhua. He noted that Parmesan production requires long-term planning, with cheese aging anywhere from one to four years before it reaches the market. "That makes it impossible to respond quickly to sudden changes in market conditions," he said.

"Sales in the United States will probably fall, but we can't reduce production because that'll affect our future supply, and we don't know what the situation will be by then," he added. "We were planning an expansion, and now we'll likely delay that-at least until the tariff situation becomes more predictable."

Parmesan is Italy's best-selling cheese, but the ripple effects of the U.S. tariffs are expected to impact the broader agri-food sector.

Claudia Schmelzer of Monte Bernardi, a mid-sized producer of Chianti Classico and other wines in the Tuscany region, said uncertainty over the tariffs is already affecting demand in export markets.

"This is usually the time of year when distributors begin placing large orders, but now they're holding off to see how the tariffs will play out since they don't know what the final cost will be," Schmelzer explained. "The big players with wider profit margins can afford to wait, but for small and mid-sized producers, it's going to be a struggle."

"It's the uncertainty that's the big killer right now," she said.

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