Italian makers of Parmesan cheese, olive oil and different delicacies are racing to ship their wares to the US earlier than president-elect Donald Trump could make good on his risk to impose new tariffs on imports.
The US imported €4.4bn price of Italian meals, wine and spirits in 2023, however producers in Italy concern American urge for food for his or her merchandise might be curbed by the worth hikes that might doubtless comply with any new levies.
“Everybody is rushing, putting as much food in their warehouses as they can before [Trump] gets in,” stated Michele Buccelletti, whose household enterprise produces olive oil and wine in Tuscany and Umbria.
Nonetheless, such efforts are constrained by a scarcity of cargo house within the run-up to Christmas. “Right now, it’s impossible to find a 20-foot or 40-foot refrigerated container,” Buccelletti stated.
Buccelletti stated he often sends 20,000-30,000 litres of additional virgin olive oil to the US two or 3 times a 12 months. However since Trump’s victory, his US importer has been urgent him to extend shipments shortly, and he now goals to have 50,000 litres en route this month.
Filippo Marchi, normal supervisor of Granarolo — a Bologna-based dairy, stated the corporate is scrambling to dispatch extra Parmigiano Reggiano and Grana Padano cheese to its personal US subsidiary.
Nonetheless, Marchi expressed concern that manufacturing “bottlenecks” — when it comes to lengthy maturation time for the cheeses — and scarce delivery capability posed severe constraints. “It is not possible to produce a lot in a short period,” he stated.
“Until December, it is quite difficult to find extra cargo space,” Marchi stated. “Everyone is trying to do the same thing.”
Granarolo is seeking to safe extra warehouse house to carry the additional inventory by late February, when it expects tariffs may very well be imposed. But Marchi nonetheless hopes Trump could rethink his tariff plan, particularly on meals.
“You have to think about the availability of products on supermarket shelves,” he stated.
Luigi Pio Scordamaglia, director of worldwide affairs at Coldiretti — Italy’s influential farming affiliation, stated some stockpiling could have begun even earlier than Trump’s win, as producers have been hedging for this end result.
Italy’s meals and wine exports to the US have been 19.5 per cent greater within the first half of 2024 than over the identical interval final 12 months. In whole, Italian agrifood exports to the US — Rome’s most vital market exterior Europe — are forecast to achieve €7.8bn for the 12 months.
Although Scordamaglia stated new tariffs are anticipated to dampen future progress, he expects the market to stay stable given “strong demand for Italian food in the US”.
Some Italians hope Prime Minister Giorgia Meloni — who has cast a robust friendship with Elon Musk, Trump’s highly effective backer and nominee to move a deregulation division — could possibly safe beneficial remedy for Italy.
Overseas minister Antonio Tajani stated this month that Trump had proven a “special regard for Italy, different from other countries” in his first time period, which may assist defend the nation from the tariff blow.
Nonetheless, Meloni admitted this week that “we are all worried about tariffs — this is a fact”. She stated that her authorities would interact in talks with the Trump administration whereas additionally looking for to spice up Europe’s competitiveness.
Throughout his first time period, Trump levied 25 per cent import duties on numerous European items, together with French wines and Italian cheese, as punishment for European subsidies to aerospace big Airbus.
Although Italian wines have been spared from direct tariffs, Albiera Antinori, president of winemaker Marchesi Antinori, stated wineries suffered anyway as US wine merchants hiked costs throughout. “It damaged the whole sector,” she stated. “It unsettles the consumer and it unsettles the supply chain.”
Not all Italian winemakers have been speeding to front-load exports, she stated, given giant volumes of crimson wine already within the US. “Each one is going to be looking at their own stocks and their own availability of wine,” Antinori stated.
Francesco Mutti, chief government of Mutti — the largest Italian tomato merchandise maker within the US market, additionally warned that front-loading exports will be dangerous, given the price of capital and further storage, which can not repay if Trump’s tariff risk doesn’t materialise — or if charges find yourself decrease than predicted.
Massimiliano Giansanti, president of Confagricoltura — which represents Italy’s largest agribusinesses, stated any export surge would doubtless be adopted by a slowdown. Many producers additionally concern that if the costs of genuine Italian merchandise rise, some American shoppers will swap to cheaper home substitutes.
“The big risk of duties is that fake products restart on the market: Italian-sounding, not Italian, he said. “Some American consumers are going to choose the products that cost less.”
