A new wave of tariffs could cause many Italian pastas to disappear from grocery shelves. A report from the Wall Street Journal details the Trump administration's plan to impose duties of 107% on Italian pasta imports.

Washington

The Trump administration has announced plans to impose tariffs totaling 107% on Italian pasta imports, combining a 15% baseline tariff with a 92% anti-dumping duty. The U.S. Commerce Department alleges that Italian pasta companies have been selling products below market prices, undercutting domestic producers, though the companies dispute these claims.

If implemented, the tariffs could lead to Italian pasta disappearing from U.S. shelves or doubling in price, as producers state that raising prices is not financially viable. The Commerce Department has not yet made a final decision, and Italian pasta makers are seeking to clarify their compliance in hopes of a revision, with a final outcome expected in the coming months.

Trump proposes tariffs on Italian pasta companies

A new wave of tariffs could cause many of your favorite Italian pastas to disappear from grocery shelves. A report from the Wall Street Journal details the Trump administration's plan to impose duties of 107% on Italian pasta imports. The U.S. Commerce Department claims that Italian pasta companies were flooding the U.S. with products that are below the normal market prices, undercutting U.S. producers. Margarita Stancati is with the Wall Street Journal and a co-author of the piece. Margarita, a few things will get people's attention, like messing with their carbs. Why is the Trump administration going ahead with these new tariffs now? Well, so there's actually two things happening at the same time. First of all, there is a kind of baseline 15% Trump administration tariff on European imports. But what is hitting Italian pasta makers specifically are these incredibly high anti-dumping duties. We're talking about 92% anti-dumping duties, which combined with the baseline tariffs will bring the tariffs to 107% on the bulk of Italian pasta. Now, that's one of the highest total tariffs on any product anywhere in the world. What's an anti-dumping tariff? So essentially, it's a tariff aimed at addressing what are perceived to be unfair trading practices. So specifically, Italian pasta companies are accused of underpricing their pasta as a way of undercutting the domestic market. Now, this is something that happens the whole time. In fact, Italian pasta companies have been reviewed by the Commerce Department because of suspected dumping since the 1990s. But this is the first time that we're seeing a potentially export-killing tariff applied to so many Italian pasta companies. How important is the U.S. market to these pasta makers in Italy, and do you think this will face backlash from customers stateside? I think, you know, for Italian pasta companies, Italy remains the main market because Italians, as you know, love pasta. This is the birthplace of pasta. But the U.S. is a hugely important market. I went to the pasta factory of La Molisana, which is one of the main exporters to the U.S., and sales in the U.S. are about 10% of their overall sales, so a huge part of their market. But I think the biggest losers potentially are American consumers. If these tariffs go ahead as planned, and, you know, to be clear, the Commerce Department hasn't issued a final decision yet and could still revise this decision, but if they do go ahead as planned, we would see the bulk of, you know, Italian durum wheat pasta exports either completely disappearing from the U.S. or doubling in price. But, you know, the producers I spoke to said there would be no point in doubling our prices, that that would make no financial sense for us, we would just stop selling in the U.S. So can you elaborate? This isn't final. What recourse do these companies have, and have you heard anything from domestic producers who are happy about this? So I think it's important to note that what's happened in this specific case is not that the pasta companies were actually accused of dumping, so of, like, selling below production costs, but they were accused of basically not doing their homework, so not providing all the information that the Commerce Department requested. For example, some words were left untranslated, and they were accused of not giving all the information that was asked of them. They say that's not true, and now they're trying to prove their case that they were cooperative with investigation and are basically, in their brief, they said, look, you maybe didn't understand the documents we sent you, we can clarify any questions you may have. So they're hoping that over the next few weeks or months, the Commerce Department will revise this decision over the next few months. But this could happen as soon as January, although it may take a bit longer because of the shutdown. Okay. Margarita Stankati, thank you. Thank you so much.

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