U.S. cuts proposed tariffs on Italian pasta imports

Italian pasta will be exempt from the steep tariffs the Trump administration has threatened to impose on 13 producers.

The move could result in U.S. importers being taxed at higher rates than the actual pasta itself is worth, and prices for U.S. consumers rising sharply.

But on Thursday, Italy’s foreign ministry said the proposed rate had now been slashed.

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

A tariff is a tax paid by consumers of imported products.

Since returning to the White House last year, U.S. President Donald Trump has unveiled a series of sweeping tax plans, although some have been softened.

The president has sought to address trade practices he believes are harmful to the United States and to promote American manufacturing.

But economists have long warned that such moves would ultimately drive up costs for consumers, exacerbating the cost-of-living problem.

In the case of pasta, the United States claims that Italian-made goods are sold in the United States at “below normal prices,” undermining local producers. This pricing policy is sometimes called dumping.

The U.S. Department of Commerce plans to impose a 91.74% tariff on imported U.S. pasta produced by 13 Italian manufacturers.

Given that most products purchased from the EU into the US are currently subject to a basic tariff of 15%, the plan would result in pasta being taxed at more than 100% of its value.

Although the products produced by these 13 companies account for only a small portion of the total pasta imports into the United States, they have raised concerns among consumers about significant price increases.

The plan would also create political trouble for Italian Prime Minister Giorgio Meloni, who is relatively close to Trump among European leaders.

On Thursday, Italy’s foreign ministry announced that the United States had canceled its plans, saying it represented “recognition by the U.S. authorities of the constructive cooperation shown by Italian companies.”

The Italian statement added that in the case of La Molisana brand, the tariff rate has been reduced to 2.26%. Others will face a slightly higher tax rate of up to 13.98%.

In a statement to BBC America partner CBS News, a Commerce Department spokesperson said: “(Our) preliminary analysis shows that pasta manufacturers have addressed many of the concerns raised by the Commerce Department in its preliminary ruling.

“The Department will continue to engage with relevant parties and consider all information before issuing a final decision.”

Other tariffs Trump has softened recently include plans to increase import taxes on furniture, which were delayed by 12 months shortly before they were due to take effect on New Year’s Day.

In November, the president signed an order allowing certain staple foods — including coffee, bananas and beef — to be exempted from tariffs.