US-EU trade: Italian pasta no longer faces 107% tariff; final rates to be announced in March

The US commerce department is preparing to ease the steep tariffs planned on Italian pasta imports, reducing the duties proposed earlier this year. Italian pasta had been facing one of the highest tariff burdens among European food products entering the United States. While most European Union goods are already subject to duties of at least 15%, pasta exports from Italy were initially set to attract an additional 92% levy, taking the total tariff rate to 107%. Under the revised proposal, the duties are now expected to fall within a range of 24% to 29%. The commerce department said the final tariff rates would be announced on March 12, following a review process detailed in a post-preliminary report released on Wednesday. The investigation was launched to examine claims that some Italian producers were selling pasta in the US market at unfairly low prices. A commerce department official told CNN that the reduction followed an “evaluation of additional comments received following a preliminary determination.” “Italian pasta makers have addressed many of commerce’s concerns raised in the preliminary determination, and reflects commerce’s commitment to a fair, transparent process,” the official added. The case involves 13 Italian pasta manufacturers and stems from an antidumping complaint filed in July by two US-based companies, 8th Avenue Food & Provisions and Winland Foods. The companies accused several Italian exporters of undercutting prices on pasta shipped to the United States. In preliminary findings issued in September, the commerce department said two firms, La Molisana and Pastificio Lucio Garofalo, sold pasta in the US “at less than normal value.” The report also described both companies as “uncooperative” during the probe, stating that the information they provided was “incomplete and unreliable.” The department noted that these two producers accounted for the largest share of Italian pasta exports to the US market. Neither company responded immediately to CNN’s request for comment. Italy’s ministry of foreign affairs welcomed the latest development, saying the revised tariff outlook reflected improved cooperation. “The redetermination of the tariffs is a sign of the recognition by US authorities of our companies’ willingness to cooperate,” the ministry said.