Italian pasta makers win reprieve from Trump tariffs | Trump tariffs

The U.S. government has slashed proposed tariffs on Italian pasta, which would have nearly doubled the price of many brands for shoppers.

Donald Trump had threatened to impose tariffs of up to 92% on Italian pasta companies, after accusing 13 producers, including Barilla, La Molisana and Pastificio Lucio Garofalo, of selling their products at unfairly low prices.

Italy is estimated to be responsible for $770 million (around £570 million) in annual US pasta sales.

On Thursday, the Italian government said the US Department of Commerce (DoC) had reviewed the proposed tariffs and reduced them to a range between 2% and 14%.

Any additional taxes imposed on Italian pasta makers will be on top of the 15% tariffs Trump imposed on most products imported from the EU to the United States. However, the DoC said it was yet to make a final decision on the level of duties that would be imposed on pasta producers.

He said a preliminary analysis released earlier this week showed Italian pasta makers had “addressed many issues.” [the DoC’s] questions “.

The final results of its analysis will be announced on March 12, when a final decision on import duties will be made.

The United States said the 13 companies it is targeting represent about 16% of the pasta imported from Italy to America. Coldiretti, Italy’s agro-industrial association, had warned that the tariffs would deal a “fatal blow” to the country’s pasta industry.

The European Commission had said it would intervene in the dispute if necessary.

The Italian Foreign Ministry said the preliminary review indicated that the duty rate imposed on La Molisana would be reduced to 2.26% and the customs duty on Garofalo would be set at around 14%. The remaining 11 pasta producers will face tariffs of 9.09%.

“The recalculation of duties is a sign that the US authorities recognize the constructive desire of our companies to cooperate,” the ministry said.

The change in stance on tariffs on pasta came a day after the US administration announced it was delaying increased tariffs on upholstered furniture, kitchen cabinets and vanities for a year.

Import duties on kitchen cabinets and vanities were to increase from 25% to 50% on January 1, while duties on upholstered furniture were to increase from 25% to 30%.

The White House said the United States continued to “engage in productive negotiations with our trading partners.”