Local businesses express concern over potential American tariffs, with one owner stating, "However, 15% remains tolerable."
Savona, a city in Italy renowned for its exports of high-quality niche products and wine, is bracing for the potential consequences of a 10-15% tariff imposed by the US on European Union imports, effective August 2025. This significant increase in tariffs could have a detrimental impact on Savona's exports, particularly in the agri-food sector, which includes wine, and other niche products, accounting for €7.8 billion in annual exports to the US.
The tariffs represent a sharp increase from an average of 4.8% to 15%, raising the cost of Italian products in the US. This increase could put pressure on profit margins, potentially leading to a loss of competitiveness and export slowdowns. The impact will vary depending on whether Italian exporters choose to absorb tariff costs to maintain market share or pass costs to US buyers, which could lead to reduced demand in sensitive luxury and niche markets like fine wine and artisanal goods.
One of the businesses most vulnerable to these tariffs is the Durin winery in Ortovero, run by Laura and her husband Antonio Basso. Over the past thirty years, they have built a strong network in the US, exporting approximately 15% of their production, including Pigato, Vermentino, Granaccia, Ormeasco, and Rossese. If exports drop at the end of the year, it will be the first real sign of the impact of tariffs.
Alessandro Berta, the director of the Savona Industrial Union, believes that the unique nature of these products can mitigate the impact of tariffs. However, he finds it unlikely that production will be relocated to the US due to a 10% increase. The US-EU trade balance heavily favours Europe, and Italy has significant exports to the US, with leading sectors such as pharmaceuticals, automotive, luxury goods, cosmetics, aeronautics, and agro-food.
The Savona Port Users' Union's president, Gerardo Ghiliotto, predicts direct effects on Savona's production activities to be measurable towards the end of the year. The effects on logistics, maritime, and port activities in Savona are complex to analyze, but the potential slowdown in exports could have a ripple effect on the local economy.
Uncertainty about the full implementation details and possible special exemptions leave exporters nervous. Delays or lack of exemptions could cause export slowdowns and affect investment and employment locally, including in the Savona region. The city's agricultural and industrial production already exceeds the national average by 3%.
In conclusion, the 10-15% tariffs will likely increase costs for Savona’s exporters of high-quality niche products and wine, potentially leading to economic and moral losses for businesses like the Durin winery. The ultimate effect will depend on how much of the tariff costs exporters absorb, currency fluctuations, and future trade developments.
- The increase in tariffs from an average of 4.8% to 15% could lead to an increase in the cost of Italian products in the finance sector, potentially causing significant losses for businesses exporting luxury and niche products such as fine wine and artisanal goods.
- The Durin winery in Ortovero, which exports approximately 15% of its production to the US, may experience a drop in exports towards the end of the year, signifying the possible impact of the proposed tariffs on business profit margins and competitiveness.
