US Backs Down on Punitive Tariffs for Italian Pasta
A potential trade war over pasta has been averted, as the United States substantially reduced proposed tariffs on imports from 13 Italian producers. The initial threat of tariffs exceeding 100% – possibly higher than the cost of the pasta itself – sparked fears of sharply rising prices for American consumers.
Washington Reverses Course Amidst Italian Cooperation
On Thursday, the Italian foreign ministry announced the US had substantially scaled back its proposed tariffs, a move hailed as “an acknowledgement by the US authorities of the constructive co-operation shown by Italian companies.” The shift comes after the US accused the 13 firms of dumping – selling products at unfairly low prices – and initially threatened tariffs of nearly 92%.
The dispute centered on allegations that Italian-made pasta was being sold in the US at “less than normal value,” undercutting domestic producers. The US Commerce Department had planned to impose a tariff rate of 91.74% on pasta from the targeted Italian companies. Combined with an existing 15% tariff on most goods imported from the European Union,this would have resulted in a total tax burden exceeding the value of the product.
Though,a spokesperson for the US Commerce Department indicated a change in assessment. “our post-preliminary analysis indicates that Italian pasta makers have addressed many of Commerce’s concerns raised in the preliminary determination,” the spokesperson stated, as reported by CBS News. “commerce will continue to engage with interested parties to take into account all facts before issuing the final determination.”
The revised tariff rates vary by producer. Notably, the rate for the brand La Molisana was reduced to as low as 2.26%, while others will face rates up to 13.98%. While the affected companies represent only a small portion of total Italian pasta imports into the US, the initial tariff proposal raised concerns about broader economic implications.
Trump Administration’s Trade Policies Under Scrutiny
The initial threat of tariffs on Italian pasta is part of a wider pattern as president Trump returned to office last year. He has implemented a broad program of tariffs aimed at addressing trade practices deemed harmful to the US and bolstering American manufacturing. Though, economists have consistently cautioned that such measures can ultimately increase costs for consumers and exacerbate cost-of-living challenges.
This latest reversal follows similar softening of other Trump-era tariffs. A planned increase on imported furniture was postponed for 12 months, and in November, the president authorized exemptions for key food products like coffee, bananas, and beef.
The situation also carried potential political ramifications for Italian Prime Minister Giorgia Meloni, who maintains a relatively close relationship with President Trump among European leaders.The resolution of the pasta tariff dispute is highly likely to be viewed favorably within her administration.
The US Commerce Department will continue its analysis and engage with stakeholders before issuing a final determination. .
Why did this happen? The US initially accused 13 Italian pasta producers of “dumping” – selling pasta in the US at unfairly low prices, harming American manufacturers.
Who was involved? The key players were the US Commerce Department, the 13 Italian pasta producers (including La Molisana), the Italian Foreign Ministry, and President Trump’s administration.
What was the initial threat? The US proposed tariffs exceeding 100% on pasta imports from the 13 Italian companies, potentially raising prices for US consumers.
how did it end? Following what the US described as “constructive co-operation” from the italian companies, the US significantly
