Your favorite pasta brands could disappear from grocery stores as Trump plans 107% import tax
In little more than a year after he was elected U.S. President, Donald Trump's economic policies have disrupted everyday life for Americans. Tariffs are already driving up grocery bills, and now pasta might become too expensive. The Trump administration is considering increasing the tax on the import of pasta from Italy to 107%.
According to a report in CBS News, a proposal made by the Commerce Department in September states that it would add a whopping 92% on antidumping duty on pasta products coming from 13 Italian companies. This includes popular brands like La Molisana and Pastificio Lucio Garofalo. The reason why these duties have been proposed is that these 13 Italian pasta makers have been selling their products at lower prices than American-made pasta, undercutting local companies in the process.
From the perspective of the U.S. government, it's not hard to understand that such a decision would benefit the pasta companies at home. As far as they’re concerned, it would create a level playing field for all. However, the Italian pasta companies have not accepted responsibility for any wrongdoing, and the ones that are going to be directly affected by these measures, as always, will be the consumers who have developed a taste for Italian pasta.
That is not a low number. Last year, Italian pasta was valued at $684 million. That goes to show that the product is famous among millions of people. But that’s not all. Apart from the 92% antidumping duty, the Trump administration has also levied 15% tariffs on imports from the European Union. Combine those two, and Italian pasta will now face a 107% import tax. For both business owners and customers, that is bad news.
The report suggests that a lot of companies are planning to pull out of the U.S. market come January, and the ones that are not pulling out will have to sell their products at a premium price. According to experts, this will leave the shelves in the pasta aisle of supermarkets deserted. "You don't have enough domestic manufacturing to fill up those shelves. So you're going to walk into the pasta aisle and you're going to see it half empty,” Phil Lempert, food industry analyst and editor of SupermarketGuru, said.
However, one has to remember that this is a preliminary proposal that will go through a lot of hurdles before being put into action. Therefore, nothing is confirmed as of now. At the same time, according to White House spokesperson Kush Desai, pasta is going to disappear from the country. "Italian pasta is not 'disappearing,” he said, before adding, “The pasta makers still have several months to continue participating in this review before this preliminary finding becomes finalized.”
More on Market Realist:
US Supreme Court can stop Trump's tariffs from ruining your Christmas — here's how
Walmart could suffer a massive $2 billion loss as Trump admin halts SNAP benefits
