U.S. Tariffs Threaten Italian Wine Industry, Expect Revenue Losses

French businesses are facing potential economic disruption following the U.S. announcement of a 25% tariff on key exports, including wine and luxury items, which many see as retaliation for France's digital services tax targeting American tech companies. President Emmanuel Macron convened an emergency meeting to discuss the risks and potential coordinated responses alongside European Union partners. Meanwhile, Italian wine producers are similarly alarmed by a 20% tariff, which threatens to reduce their annual revenues by approximately 323 million euros and could lead to a 25-35% drop in U.S. consumption of Italian wines. Importers warn that higher prices may drive consumers to seek cheaper alternatives, jeopardizing well-known brands. Despite these challenges, both French and Italian industries are hopeful for a diplomatic resolution to avert a trade war. The situation underscores the interconnectedness of European wine exports and U.S. trade policies.