US cuts proposed tariffs on Italian pasta imports

Italian pasta is expected to be spared high U.S. tariffs that the Trump administration had threatened against 13 producers.

This decision could have resulted in US importers being taxed at a rate higher than the value of the pasta itself, and a sharp rise in prices for US consumers.

But on Thursday, the Italian Foreign Ministry said the proposed rate had now been significantly reduced.

In a personal statement, the United States said the 13 companies had addressed many of its concerns. He had previously accused companies of selling their products at unfairly low prices and threatened to impose tariffs of almost 92%.

Tariffs are a type of tax paid by a consumer who imports a product.

Since returning to the White House last year, US President Donald Trump has launched a sweeping tax package, although some have since been eased.

The president has sought to address trade practices he sees as harmful to the United States and to boost American manufacturing.

But economists have consistently warned that such measures could ultimately raise costs for consumers, making cost-of-living problems worse.

In the case of pasta, the United States alleged that products made in Italy were sold “at a price below normal value” in the United States, driving down prices for local producers. This pricing policy is sometimes called dumping.

The Commerce Department was considering imposing a 91.74 percent tariff rate on U.S. imports of pasta made by the 13 Italian producers.

Given that there are now underlying tariffs of 15% on most products purchased in the United States from the European Union, the plan would have resulted in a tax rate on pasta exceeding 100% of its value.

This has raised concerns among consumers that they will face significant price increases, even though the products made by the 13 companies represent only a small share of the total Italian pasta imported into the United States.

The plan would also have represented a political headache for Italian Prime Minister Giorgia Meloni, who has a relatively close relationship with Trump among European leaders.

On Thursday, the Italian Foreign Ministry announced that the United States had abandoned its project, saying it represented “a recognition by the American authorities of the constructive cooperation demonstrated by Italian companies”.

In the case of one brand, La Molisana, the duty rate was lowered to 2.26%, the Italian press release added. Others will face slightly higher rates, up to 13.98%.

In a statement provided to CBS News, the BBC’s US partner, a spokesperson for the US Department of Commerce said:[Our] Post-preliminary analysis indicates that Italian pasta makers have addressed many of the concerns raised by Commerce in the preliminary ruling.

“Commerce will continue to collaborate with interested parties to consider all information before making the final determination.”

Other tariffs recently eased by Trump include a planned increase in the tax levied on furniture imports – which was postponed for 12 months shortly before it took effect on New Year’s Day.

And in November, the president signed an executive order allowing some key food products, including coffee, bananas and beef, to escape his tariffs.