Site icon Vino Joy News

Trump’s Tariffs Push Italian Wine Trade Toward Asia, Latin America

Chianti Classico wines (pic: Consorzio Vino Chianti Classico)

Italian wine producers are stepping up efforts to diversify exports as the U.S. President Donald Trump threatens to impose a 30% tariff on European Union goods starting August 1. The move has cast a new shadow over transatlantic trade and prompted producers long reliant on the U.S. market to seek growth in Asia, Latin America and Africa.

Italy is the largest exporter of wine to the U.S., but rising uncertainty has forced the industry to reconsider its long-standing “America-first” approach. Producers and trade groups are calling on the EU to support new strategies that target more stable, alternative markets.

“There’s no point in feeling sorry for ourselves,” said Giovanni Busi, president of Consorzio Vino Chianti, a Tuscan wine producers’ association, when interviewed by Reuters. “We should see this as an opportunity to accelerate a new export strategy, focusing on alternative and more stable markets.”

According to Italy’s national statistics agency ISTAT, Italy exported €1.9 billion worth of wine to the U.S. in 2024, accounting for 23.5% of the country’s total wine exports. That dominance, however, has become a liability in the face of looming tariffs and political risk.

Busi identified Latin America—especially Brazil, Argentina, Uruguay, and Paraguay—as key growth markets, and pointed to increasing demand across Asia in regions like mainland China, Japan, Vietnam and Taiwan.

Nadia Zenato, co-owner of Zenato winery (pic: Zenato)

Nadia Zenato, co-owner of famed Amarone producer Zenato in Veneto, echoed the call for diversification. “This new trade conflict with the United States requires us to adopt a broader, more diversified strategic approach,” she said in an interview with Vino Joy News.

“We’re strengthening our presence in Asia, focusing on China—a market that has been cautious but holds great potential—as well as fast-growing countries like South Korea and Thailand. At the same time, we’re exploring Latin America, where we hope the EU can secure a free trade agreement. Africa is also emerging as a promising frontier. And in Canada, where American wine imports are being reduced, we aim to further consolidate our base.”

“It’s time to open new paths with vision and determination,” she added.

Growing Pains in China

Despite a slight rebound in China’s overall wine imports, largely due to the return of Australian wines, Italian wines are slow to pick up momentum. Between January and May 2025, imports of Italian wines dropped 19.2% in volume and 12.3% in value, according to Chinese customs data. Even sparkling wines led by Prosecco fell by 6.2% in volume and 8.2% in value. 

“Italian wineries have long tried to enter markets like China, Japan, and Brazil—not just because of U.S. tariffs,” said Alexander Hofer, founder and managing director of Divino, a firm offering distribution and consulting services to around 40 European wine estates. “But there’s no other market big enough to offset the potential volume loss in the U.S.”

A former executive at Gruppo Italiano Vini, Hofer has over two decades of experience in the wine trade. However, he’s not expecting a quick turnaround in China. “Unfortunately the Chinese market for imported wines from Italy has almost collapsed and right now nobody is very optimistic it will recover in the near future,” he added.

Even brands with some success in China are citing low consumer awareness on Italian wines as a main challenge for growing the category. Liu Jingjiang, president of Beijing Longvision Vinita Group and exclusive distributor for Bolla wines, said Italian wines suffer from low brand awareness.

“France has its classified growths, Australia has strong brand leaders, and New Zealand has built recognition for Sauvignon Blanc,” he said. “Italy’s high-end wines like Amarone and Barolo haven’t been systematically promoted in China. And the entry-level wines that perform well in the U.S. barely register here.”

“You can’t expect a market that’s unfamiliar with Italian wines to suddenly fall in love with them overnight,” he added.

Liu advises that wineries targeting China must manage expectations. For entry-level wines, a low-price strategy may be necessary. For those already in the market, reinvestment should be measured. “Don’t rush,” he said. “Many clients aren’t planning to purchase this year—even with subsidies, deals are hard to land.”

Inventory pressure remains high, making long-term brand building and timing all the more critical.

Hofer agreed. “A weak market doesn’t mean no opportunity. But for Italian brands to truly take root in China, they’ll need to commit to the long game, choose the right partners, and have plenty of patience.”

Exit mobile version