Trump TACO now with pasta – backtracks on Italian pasta tariffs after industry pushback

Summary:The U.S. Commerce Department has sharply reduced proposed antidumping duties on Italian pasta imports, stepping back from levels that risked forcing producers out of the U.S. market.Initial duties of up to 92% were revised down to 2.3% for La Molisana and 13.9% for Garofalo, with most other producers facing a 9.1% tariff.Italian pasta exporters remain subject to a separate 15% U.S. tariff on EU imports, limiting the overall relief.The decision follows weeks of lobbying by Italy’s government and industry groups.A final determination in the antidumping review is due by 11 March, leaving some residual uncertainty.The outcome helps protect roughly US$770 million in annual Italian pasta exports to the U.S.Info via a Wall Street Journal report (gated).Trump has stepped back from imposing trade-killing antidumping duties on Italian pasta makers, significantly reducing proposed tariffs and easing fears that major brands would be forced to withdraw from the U.S. market. The revised decision by the U.S. Commerce Department lowers duties dramatically from preliminary levels that had alarmed Italian producers and policymakers alike.Under the revised measures, leading exporters La Molisana and Garofalo will face antidumping duties of 2.3% and 13.9%, respectively, down from an initial proposal of as much as 92%. Eleven other Italian pasta makers will be subject to a 9.1% tariff. While these duties still add to costs, the reductions are widely seen as allowing Italian pasta to remain commercially viable in U.S. stores.The earlier proposal, issued in September, had stunned the Italian pasta industry, which exports around US$770 million worth of product annually to the United States. Producers warned that tariffs at those levels would have effectively shut them out of the market. In response, Italy’s government and industry leaders mounted an intense lobbying effort, framing the issue not just as a trade dispute but as a matter of national economic and cultural significance.Defending pasta exports became a high-profile priority for the government of Prime Minister Giorgia Meloni, which has sought to position Italy as a close European partner of the Trump administration. Some Italian officials and executives privately questioned whether broader U.S. protectionist policies influenced the severity of the preliminary ruling, though U.S. officials rejected that view, insisting the decision was based on technical criteria.Commerce said its updated analysis showed Italian producers had addressed many concerns raised earlier and reaffirmed its commitment to a fair and transparent process. However, uncertainty remains. The antidumping review is still ongoing, with a final report due by March 11. Moreover, Italian pasta exporters continue to face a separate 15% U.S. tariff on European Union imports, meaning overall trade conditions remain restrictive despite the relief.
This article was written by Eamonn Sheridan at investinglive.com.

🔗 Source