Italian Pasta Faces Steep U.S. Tariffs, Doubling Prices

Italian pasta producers, especially Garofalo, are facing unprecedented challenges as they confront steep tariffs imposed by the United States. With the U.S. market constituting about 20% of Garofalo’s sales, fears are mounting that the new duties could drastically impact their export business.

Impending Tariffs Threaten Italian Pasta Exports

The U.S. is set to impose tariffs exceeding 100% on Italian pasta imports due to allegations of anti-dumping practices. The U.S. Department of Commerce claims that Garofalo and other Italian producers sold pasta at artificially low prices. The chief executive of Garofalo, Massimo Menna, expressed disbelief at these allegations, stating that their compliance with investigation requests was met with misunderstanding.

Details of the Investigation

Two American companies, 8th Avenue Food & Provisions and Winland Foods, initiated the latest inquiry into Italian pasta exports. Drawing from sales data of Garofalo and competitor La Molisana for the year ending June 2024, the Department of Commerce has indicated severe penalties due to purported non-compliance with data requests.

Tariff Implications

• Current U.S. tariffs are already set at 15%.
• The proposed anti-dumping duty could raise total tariffs to around 107%.
• Failure to successfully appeal could lead to estimated penalties of 15 million euros ($17.4 million).

Such high tariffs could render authentic Italian pasta prohibitively expensive for American consumers, thereby shifting their preferences to potentially mislabeled products.

The Legacy of Pasta in Gragnano

Gragnano, recognized as the European capital of pasta, has a long tradition of pasta-making. Garofalo has been part of this heritage since its founding in 1789. The unique climate, complemented by traditional production methods, plays a crucial role in maintaining pasta quality.

Local Impacts of Tariffs

The potential tariffs are causing widespread anxiety among local producers. Elena Elefante, CEO of 28 Pastai, despite being outside the investigation, is concerned about rising prices leading to diminished market presence for authentic pasta. She noted that consumer hesitation could arise as a reaction to inflated pricing.

Giovanni Milo, a local restaurateur, highlighted the importance of pasta exports to his business profitability. He expressed concern that reduced sales to the U.S. market could lead Italian producers to raise prices domestically.

Ongoing Efforts to Resolve the Situation

Garofalo and other companies are seeking administrative recourse against the proposed duties. They remain hopeful that the current investigations, which overshadow their operations, will lead to positive outcomes.

The final decision from the U.S. Department of Commerce is expected early next year, leaving many in the Italian pasta industry with uncertainty regarding their future in the vital American market.