ROME (AP) — American importers have been stockpiling Italian bubbly Prosecco as a hedge against the impact of possible European Union tariffs threatened by President Donald Trump, wine industry data show.
U.S. imports of Italian sparkling wine — 90% of that Prosecco — skyrocketed by 41% in November, after Trump's election, far exceeding consumer demand as importers filled the pipeline for future sales, according to the Union of Italian Wines trade association.
“It was quite natural at the end of the year to do extra shipments,” said the trade association president, Lamberto Frescobaldi, given the uncertainty over whether tariffs would hit Italian wines or not — and the likelihood consumers would cut back on such luxuries if tariffs made them too pricey.
“Can we survive without a glass of wine? Yes. Wine is a pleasure,’’ Frescobaldi told The Associated Press this week.
Trump said last weekend that he would impose tariffs “pretty soon” on the EU, but he did not provide any details. He put import tariffs on goods from Mexico and Canada but then delayed them for 30 days. A new tariff on imports from China took effect Tuesday.
Italian wines were not hit by tariffs during the first Trump presidency. Prosecco importers and distributors nevertheless are taking precautionary measures now to protect the market.
Italy exports nearly one-quarter of its wine to the United States, leaving the sector more heavily exposed to possible tariffs than any other Italian export, according to the trade federation. Last year, Italy’s wine exports to the U.S. totaled 1.9 billion euros ($1.97 billion).
Prosecco became the top-selling Italian wine in the United States last year, representing nearly 40% of all sales.
The first signs of market concern showed up even before Trump was elected, with Prosecco shipments to the United States increasing 17% in the first 10 months of 2024. That compares with the single-digit increases in shipments to Britain and Germany, and far outpaced U.S. consumption of Prosecco, which rose just 0.6% in the period.
“It is an important figure that we did not expect,'' said Giancarlo Guidolin, president of Prosecco DOC consortium, the largest of Italy's three Prosecco-producing consortia. ”We think there was an increase of product in the warehouse.''
One other factor in the higher deliveries may have been a threatened port strike in January, said Dina Opici, chairwoman of the Wine & Spirits Wholesalers of America.
“That said, obviously taking into consideration that there could be impending tariffs as well, I think it probably gave people a higher comfort level in making that investment,'' Opici said.
____
Silvia Stellaci in Rome and Colleen Barry in Milan contributed to this report.
Many U.S. consumers say they’ve noticed higher than usual prices for holiday gifts in recent months, according to a a December poll from The Associated Press-NORC Center for Public Affairs Research. A contributing factor is the unusually high import taxes the Trump administration put on foreign goods. While the worst-case consumer impact that many economists foresaw from the administration’s trade policies hasn’t materialized, some popular gift items have been affected more than others. Most toys and electronics sold in the U.S. come from China. So do most holiday decorations. Jewelry prices have risen due to the cost of gold.
Serbia’s prosecutor for organized crime has charged a government minister and three others with abuse of position and falsifying of documents related to a luxury real estate project linked to U.S. President Donald Trump’s son-in-law Jared Kushner. The charges came on Monday. The investigation centers on a controversy over a a bombed-out military complex in central Belgrade that was a protected cultural heritage zone but that is facing redevelopment as a luxury compound by a company linked to Kushner. The $500 million proposal to build a high-rise hotel, offices and shops at the site has met fierce opposition from experts at home and abroad. Selakovic and others allegedly illegally lifted the protection status for the site by falsifying documentation.
President Donald Trump has signed an executive order to block states from regulating artificial intelligence. He argues that heavy regulations could stifle the industry, especially given competition from China. Trump says the U.S. needs a unified approach to AI regulation to avoid complications from state-by-state rules. The order directs the administration to draw up a list of problematic regulations for the Attorney General to challenge. States with laws could lose access to broadband funding, according to the text of the order. Some states have already passed AI laws focusing on transparency and limiting data collection.
The New York Times and President Donald Trump are fighting again. The news outlet said Wednesday it won't be deterred by Trump's “false and inflammatory language” from writing about the 79-year-old president's health. The Times has done a handful of stories on that topic recently, including an opinion column that said Trump is “starting to give President Joe Biden vibes.” In a Truth Social post, Trump said it might be treasonous for outlets like the Times to do “FAKE” reports about his health and "we should do something about it.” The Republican president already has a pending lawsuit against the newspaper for its past reports on his finances.
President Donald Trump says he will allow Nvidia to sell its H200 computer chip used in the development of artificial intelligence to “approved customers” in China. Trump said Monday on his social media site that he had informed China’s leader Xi Jinping and “President Xi responded positively!” There had been concerns about allowing advanced computer chips into China as it could help them to compete against the U.S. in building out AI capabilities. But there has also been a desire to develop the AI ecosystem with American companies such as chipmaker Nvidia.
House Republicans in key battleground districts are working to contain the political fallout expected when thousands of their constituents face higher bills for health insurance coverage obtained through the Affordable Care Act. For a critical sliver of the GOP majority, the impending expiration of the enhanced premium tax credits after Dec. 31 could be a major political liability as they potentially face midterm headwinds in a 2026 election critical to President Donald Trump’s agenda. For Democrats, the party’s strategy for capturing the House majority revolves around pinning higher bills for groceries, health insurance and utilities on Republicans.
