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U.S. reduces proposed tariffs on Italian pasta, Italy's foreign ministry says

By
Megan Cerullo
Reporter, MoneyWatch
Megan Cerullo is a New York-based reporter for CBS MoneyWatch covering small business, workplace, health care, consumer spending and personal finance topics. She regularly appears on CBS News 24/7 to discuss her reporting.
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Megan Cerullo

/ CBS News

The U.S. has rolled back proposed steep tariffs on Italian-made pasta, the U.S. Department of Commerce and Italy's foreign ministry both said Thursday. 

The Commerce Department has sharply reduced a proposed duty on 13 Italian pasta makers, cutting the rate from as high as 92% to as little as 2.26%, Italy's foreign ministry Jan. 1. The duties would have been imposed on top of existing 15% tariffs on most imports from the European Union.

The Trump administration had proposed the antidumping levies after a found that Italian pasta producers, including Barilla, La Molisana and Pastificio Lucio Garofalo, sold products at artificially low prices that undercut U.S. manufacturers. Together, the 13 pasta producers account for 16% of imported pasta from Italy to the United States, according to the Commerce Department.

Had the higher duties taken effect, U.S. shoppers could have faced steeply higher prices for Italian-made pasta, and some Italian producers might have stopped shipping to U.S. retailers, experts told CBS News. 

"The recalculation of the duties is a sign that U.S. authorities recognize our companies' genuine willingness to cooperate," the foreign ministry said.

La Molisana pasta imports will be tariffed at a rate of 2.26%, the foreign ministry said, while Garofalo will face nearly 14% tariffs, and 11 additional pasta brands will be subject to a 9% import duty.

A spokesperson for the Commerce Department told CBS News that the new antidumping rates were based on an "evaluation of additional comments received" after the proposed duty rates were determined.

"This post-preliminary analysis indicates that 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. Commerce will continue to engage with interested parties to take into account all information before issuing the final determination," the spokesperson said.

The final results of Commerce's review will be announced in March, after which the duties will go into effect. 

Edited by Aimee Picchi

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