Trump administration scales back proposed tariffs on Italian pasta makers following review

Fox Business | January 02, 2026 at 01:28 AM UTC
Bullish 85% Confidence Majority Agreement
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Key Points

  • La Molisana's tariff was reduced to 2.26% and Garofalo's to 13.98%, while 11 other producers face a 9.09% duty, down from the originally proposed rates of up to 92%
  • Italian pasta makers had warned the initial tariffs would effectively shut them out of the U.S. market, worth nearly $800 million in exports annually
  • Final rates will be announced March 12 (with possible 60-day extension), as Italy's foreign ministry praised U.S. recognition of companies' 'constructive willingness to cooperate'

AI Summary

Trump Administration Scales Back Italian Pasta Tariffs

The U.S. Commerce Department has significantly reduced proposed tariffs on Italian pasta manufacturers following a review of alleged unfair pricing practices. Initial tariffs of up to 92% have been dramatically scaled back after Italian exporters addressed concerns raised during the investigation.

Revised Tariff Structure:

  • La Molisana: 2.26% (down from proposed higher rates)
  • Garofalo: 13.98%
  • Eleven other producers including Barilla and Rummo: 9.09%

These new rates come in addition to the existing 15% tariff on most pasta imports. The original proposal threatened to effectively exclude Italian pasta makers from the U.S. market, which represents nearly $800 million in annual exports for Italy.

Market Impact:

The tariff reduction provides significant relief to Italian pasta manufacturers who warned that the initial proposed duties would have shut them out of the American market. Italy's foreign ministry acknowledged the U.S. recognition of Italian companies' "constructive willingness to cooperate" during the investigation.

Timeline:

Final tariff rates are expected to be announced on March 12, 2025, with a possible extension of up to 60 days. The Commerce Department conducted the investigation following allegations that Italian pasta was being sold in the U.S. at unfairly low prices, a practice known as dumping.

This development represents a diplomatic win for Italy-U.S. trade relations and ensures continued access to Italian pasta products for American consumers at competitive prices. The decision reflects the Trump administration's willingness to adjust trade policies following constructive engagement with trading partners.

Model Analysis Breakdown

Model Sentiment Confidence
GPT-5-mini Neutral 85%
Claude Sonnet 4.5 Bullish 80%
Gemini 2.5 Pro Bullish 90%
Consensus Bullish 85%