It is today’s news, the one dreaded for weeks that has experienced peaks of horror (200% duties) and hope (Italian wine will be spared). As of 10 p.m. yesterday, duties on European products are a reality.
It’s all anyone talks about in the wine world. Concerned producers, export managers in dire straits and possible cuts to participation in international fairs and events. 20% duties imposed on Italian and European products are now real. So much thunder that it rained in short.
We are in good or bad company
The wine industry risks three or four hundred million euros, it could collapse from 1.9 to 1.5 as exports to the U.S., thel that would represent a 5% drop in the overall total. A problem, certainly, though 95% remains. However, it is the first time after so many years of growth that we are seeing a regression.
Then the domestic market is also stalled
Problems, troubles. Sure. What to do is unclear. It will depend on what the European Union does. It will depend on how it manages to revive the image of wine, which is not only something to drink but also a piece of our Mediterranean civilization. It will depend on the ability we all have to communicate, disclose, inform.
On the duties they, of the Americans let us remember one thing, however. Importers, distributors of Italian wines, Italian restaurants in the U.S., are made up of American companies. They are also affected like us. And the duties are also to their detriment.
P.S. The U.S. stock markets are going down and the dollar has lost 8 percent in a few days. The exchange rate is 1.11 now. It means that the tariffs will have less impact than expected.
Situations are dynamic, not static. The 20 percent tariffs with a falling dollar can be reabsorbed if this continues.
The stock market is also in free fall, Wall Steet minus 3.7 percent, Nasdaq minus 5.05 percent.
But I am not an economist. There are different seasons in the vineyard, though, as Chance Gardener would have said. We’ll see.
