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 worry American urge for food for his or her merchandise can be curbed by the worth hikes that may doubtless comply with any new levies.
“All people is dashing, placing as a lot meals of their warehouses as they’ll earlier than [Trump] will get in,” mentioned 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. “Proper now, it’s inconceivable to discover a 20-foot or 40-foot refrigerated container,” Buccelletti mentioned.
Buccelletti mentioned 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 rapidly, and he now goals to have 50,000 litres en route this month.
Filippo Marchi, basic supervisor of Granarolo — a Bologna-based dairy, mentioned 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 transport capability posed severe constraints. “It isn’t potential to supply lots in a brief interval,” he mentioned.
“Till December, it’s fairly troublesome to seek out additional cargo house,” Marchi mentioned. “Everyone seems to be attempting to do the identical factor.”
Granarolo is trying to safe further warehouse house to carry the additional inventory by late February, when it expects tariffs could possibly be imposed. But Marchi nonetheless hopes Trump could rethink his tariff plan, particularly on meals.
“It’s a must to take into consideration the provision of merchandise on grocery store cabinets,” he mentioned.
Luigi Pio Scordamaglia, director of worldwide affairs at Coldiretti — Italy’s influential farming affiliation, mentioned 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 increased within the first half of 2024 than over the identical interval final 12 months. In complete, Italian agrifood exports to the US — Rome’s most necessary market outdoors Europe — are forecast to succeed in €7.8bn for the 12 months.
Although Scordamaglia mentioned new tariffs are anticipated to dampen future development, he expects the market to stay strong given “sturdy demand for Italian meals within the US”.
Some Italians hope Prime Minister Giorgia Meloni — who has cast a strong friendship with Elon Musk, Trump’s highly effective backer and nominee to go a deregulation division — might be able to safe beneficial therapy for Italy.
Overseas minister Antonio Tajani mentioned this month that Trump had proven a “particular regard for Italy, completely different from different nations” in his first time period, which might assist protect the nation from the tariff blow.
Nonetheless, Meloni admitted this week that “we’re all nervous about tariffs — it is a reality”. She mentioned that her authorities would interact in talks with the Trump administration whereas additionally searching 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, mentioned wineries suffered anyway as US wine merchants hiked costs throughout. “It broken the entire sector,” she mentioned. “It unsettles the patron and it unsettles the provision chain.”
Not all Italian winemakers have been dashing to front-load exports, she mentioned, given giant volumes of pink wine already within the US. “Every one goes to be taking a look at their very own shares and their very own availability of wine,” Antinori mentioned.
Francesco Mutti, chief government of Mutti — the most important Italian tomato products 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, mentioned any export surge would doubtless be adopted by a slowdown. Many producers additionally worry that if the costs of genuine Italian merchandise rise, some American shoppers will change to cheaper home substitutes.
“The massive threat of duties is that faux merchandise restart available on the market: Italian-sounding, not Italian, he mentioned. “Some American shoppers are going to decide on the merchandise that price much less.”