French champagne and Italian parmesan may disappear from US shelves due to Trump's tariffs - FT
Kyiv • UNN
Trump threatens to impose 25% duties on European goods, which could make delicacies unavailable to Americans. Producers warn of a possible shift of consumers to local alternatives.
French champagne and Italian Parmesan cheese are among the European delicacies that could be at risk if U.S. President Donald Trump imposes tariffs on imports from the EU, as producers warn that American consumers will find it hard to afford them. This was reported by The Financial Times, as conveyed by UNN.
As U.S. household budgets are strained by rapidly rising egg prices and new tariffs on goods from Mexico, Canada, and China, European food and wine producers warn that American consumers will turn away from their expensive delicacies in favor of cheaper domestic imitations
As Financial Times writes, while the U.S. relies on Mexico for fresh produce such as avocados and strawberries, and on Canada for staples like wheat and beef, Europe supplies them with the most exquisite imported goods. These include cheese and wine, which, as a Rabobank report warned last month, will be two sectors most affected by the 25% tariffs.
The EU exported food and beverages worth 38 billion euros to the U.S. in 2024, but imported only 14 billion euros from America. Trump threatened a 25% tariff on imports from the bloc last month, complaining that it "was created to inflate the United States." European producers are bracing for impact.
"The hit in terms of volume (sales - ed.) could be very, very large," warned Filippo Marki, CEO of the Italian dairy company Granarolo, which exports Parmesan to the U.S.
It is noted that European food and wine producers were relatively unscathed in 2019 when Trump imposed 25% import tariffs on a number of their products, although not on champagne, during a dispute with the EU over state aid to aircraft manufacturer Airbus.
But Marki said that Parmesan was more affordable in 2019 — about 13 euros/kg including tariffs — while Parmesan exported to the U.S. last year rose to 15 euros/kg due to higher raw material costs.
According to Marki, the new 25% tariff will raise the wholesale price of Parmesan by nearly 50% compared to two years ago, making it unaffordable for all but the wealthiest consumers.
It may be very, very difficult for Americans to continue buying as they did in the past
FT notes that the U.S. is the largest export market for French wine and spirits, with sales reaching 3.8 billion euros last year. In 2023, 26.9 million bottles of champagne worth 800 million euros were shipped to the U.S.
"We will have to export to other places," said Alexandre Chartogne, whose champagne house Chartogne-Taillet sells 30% of its annual sparkling wine production in the U.S.
There is a whole audience in the U.S. that seems to need European culture. It's sad... If they close the borders to imports - if they impose more tariffs - they will lose access to (this - ed.)
Coldiretti, a powerful lobby of Italian farmers, estimated that American consumers will have to pay an additional 2 billion euros for their favorite imported Italian delicacies, including wine, cheese, olive oil, and prosciutto, if Trump follows through on his threat to impose tariffs.
For some products, there are no local equivalents. This is a losing choice, and I hope that the U.S. will carefully assess the situation before making this decision
In addition to European producers and American consumers, American food importers, grocery retailers, and restaurants will also suffer if high tariffs lead to price increases.
"This will hit everyone, from specialty cheese shops to elite restaurants," warned Andrea Berte, CEO of Alimentias, a large cheese trader, adding that his company "will have no choice but to pass the costs onto retailers and restaurants" if tariffs are imposed.
Senior ING economist dealing with food and agriculture issues Teis Geyer said that many American food and wine traders accelerated imports since last year to try to get ahead of potential tariffs.
For all sparkling wines - champagne, prosecco - export figures were particularly high
Some producers and traders also hope that their products can be preserved, as in 2019, when Trump, imposing tariffs on European cheese, made exceptions for Gouda and Edam. "Even people in the Dutch dairy sector did not know why this was the case," said Geyer.
But producers and traders understand well that American consumers who do not want or cannot pay much more for imported treats will turn to local substitutes.
Rabobank economist Owen Wagner said: "When it comes to wine, consumers may believe that a certain vintage is excellent, but if it becomes 25% more expensive, they may not hesitate to switch to California wine."
While Trump claims that tariffs will increase domestic production, European food and wine producers argue that their products are unique.
The U.S. makes excellent cheeses. But you cannot replicate real Parmigiano Reggiano or Brie de Meaux. Some of these products are tied to specific regions, their climate, their soil. You cannot just produce them somewhere else
Chartogne, who says his village has been producing champagne since the eighth century, agreed. "They can try to copy, but it will always be just an imitation. They can make very good sparkling wine, but it will have nothing to do with champagne."
