Consumers, particularly Italian pasta lovers, of the United States might soon see their favorite brands cost dramatically more. The US Commerce Department is currently poised to impose tariffs over 100% on imports from 13 different Italian pasta companies. This features well-known companies such as Pastificio Sgambaro and Pasta Garofalo. American companies 8th Avenue Food & Provisions and Winland Foods filed an antidumping complaint last July. Even so, these tariffs have gone into effect.
Dough this important move is groundbreaking and promising not just for the pasta industry, but forever alter the landscape for consumers. Next, they will institute new tariffs in addition to the current 15% tariff already hitting European Union goods. This action would further increase the overall rate to an all-time high of 107%. As consumers prepare for possible sticker shock—Little Italy’s icon, Barilla, has already raised prices —the effect on pasta manufacturers and consumers alike is just beginning to show.
Tariff Details and Background
Indeed, just last week the US Commerce Department announced the initiation of an antidumping investigation. They are in fact answer to whether Italian pasta is being dumped on the American market. The two fledgling American companies were taking quite a leap. In opposition, the government responded swiftly and harshly, calling back policies remembered from almost thirty years ago under President Bill Clinton.
With 12 other companies currently absorbing these large tariffs, Pastificio Sgambaro of Cologna Veneta, Italy, is especially affected because of its well-known history of high quality pasta. Claudio Constantini, the general manager at Pastificio Sgambaro, expressed concern over how these tariffs would affect their ability to export to the United States.
“There is no way we can absorb (the tariffs) in our price structure,” – Claudio Constantini
Tariffs are a direct threat to the ability of Italian pasta to compete with less expensive products in the U.S. market. This might drive consumers to opt for less expensive options or locally sourced items instead.
Consumer Reactions and Adaptations
Now, as news of the tariffs-storm on the horizon spreads, American consumers are starting to take a stand. Pasta lovers, such as entrepreneur Greg Bettinelli, are getting ahead of the problem by preemptively hoarding their favorite varieties. On his honeymoon in Florence in 2002, Bettinelli learned about Pasta Rummo. When he returned to America, he discovered it almost impossible to source.
With fears that prices will skyrocket or that these beloved brands may disappear from shelves altogether, many consumers are considering alternatives. Costanza Genoese Zerbi, a real estate agent based in Long Beach, California, is motivating her audience on social media. She inspires them to try their hand at creating their own pasta!
“Making your own pasta is a way to enjoy a higher-quality plate at a more affordable price,” – Costanza Genoese Zerbi
Consumers are making it abundantly clear that they want to see more uncompromising quality. They want to be able to do it without going bankrupt.
Impact on Italian Exporters
Together, this group of 13 Italian companies makes up about 16 percent of all Italian exports of pasta to the United States. Given this overwhelming market share, the potential negative impacts of these tariffs should raise alarms for exporters.
Claudio Constantini noted that the tariffs would obliterate their profits. He said they might be able to “practically eliminate” any profits from US pasta imports by the impacted firms. Italian producers are in a rocky spot. Losing access to their most important market would be devastating and risks ending their long-established dependence on American consumers for their products.
These tariffs are a really big deal. They come as the Trump administration is under increasing pressure from American voters, worried about affordability and cost-of-living crises. With skyrocketing food prices, dietary staples have become prohibitively expensive. This fact should urge lawmakers to reassess their trade policies, which often have a more severe negative effect on people—specifically, consumers.