As 107% Italian pasta tariff looms, U.S. retailer says 'It's basic food. Something's got to be sacred' | Fortune
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As 107% Italian pasta tariff looms, U.S. retailer says 'It's basic food. Something's got to be sacred' | Fortune
"It started with the U.S. Commerce Department launching what it says was a routine antidumping review, based on allegations Italian pasta makers sold product into the US at below-market prices and undercut local competitors. That has led to a threat of 92% duties, which would come on top of the 15% tariff President Donald Trump's administration imposed on European exports generally."
"The news sent shockwaves through Italy, where 13 producers would be subject to the whopping one-two punch. They say sales in their second biggest export market would shrivel if prices to American consumers more than double. And while the measure would hardly prompt pasta shortages, it still has perplexed importers like Sal Auriemma, whose shop in Philadelphia's Italian market, Claudio Specialty Food, has been operating for over 60 years."
U.S. Commerce Department opened an antidumping review into Italian pasta, alleging below-market pricing that undercut domestic competitors. The review has produced a threat of 92% duties, which would add to an existing 15% tariff, yielding a combined levy of about 107%. Thirteen Italian producers face the measures, which could force U.S. consumer prices to more than double and sharply reduce sales in a key export market. The U.S. accounts for roughly 15% of Italy's €4 billion pasta exports. Italian officials, the European Commission and affected companies are pursuing diplomatic and legal responses to oppose the sanctions.
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