In a significant development for transatlantic trade, the United States government has drastically reduced proposed punitive tariffs on pasta imported from Italy, offering a major reprieve to producers and American consumers alike.
A Dramatic Reduction in Proposed Duties
The US Department of Commerce (DoC) had initially threatened to impose tariffs as high as 92% on a group of 13 Italian pasta manufacturers. This move followed accusations that companies, including household names like Barilla, La Molisana, and Pastificio Lucio Garofalo, were selling their products in the US at unfairly low prices, a practice known as dumping.
However, following a review, the DoC has now slashed these proposed rates. The new preliminary duties range from just 2% to 14%. Specifically, the duty for La Molisana is set at 2.26%, for Garofalo at approximately 14%, and the remaining eleven producers face a tariff of 9.09%.
Critical Context and Pending Final Decision
It is important to note that any additional duties will be applied on top of the existing 15% tariff that the Trump administration has placed on most goods imported from the European Union. The targeted companies account for an estimated 16% of all pasta imported from Italy to the US, a trade worth around $770 million (£570 million) annually.
The DoC stated that its preliminary analysis showed Italian pasta makers had “addressed many of [the DoC’s] questions.” Italy's foreign ministry welcomed the recalculation, calling it a sign that US authorities recognise the “constructive willingness to co-operate” from the companies.
A final decision on the import duties will be announced on 12 March 2024. Until then, the precise impact on shelf prices remains uncertain.
Broader Trade Implications and Industry Relief
The shift on pasta tariffs came amidst other trade deliberations. The US administration also announced a one-year delay on planned tariff increases for items like upholstered furniture and kitchen cabinets, stating it continues to “engage in productive negotiations with trade partners.”
The proposed 92% tariffs had been labelled a “fatal blow” to Italy's pasta industry by Coldiretti, the country's powerful agribusiness association. The European Commission had also indicated it was prepared to intervene in the dispute if necessary.
This development highlights the ongoing complexities in international trade relations and provides temporary relief for a beloved culinary import, averting a scenario where the cost of many Italian pasta brands in American shops could have nearly doubled.
