US withdraws proposed tariffs on pasta from 13 Italian producers

ISTANBUL

The US Commerce Department has withdrawn proposed tariffs on pasta from more than a dozen Italian producers, dropping measures that would have nearly doubled prices for many brands.

The Commerce Department has significantly reduced a proposed duty on 13 Italian pasta makers, lowering the rate from up to 92% to as low as 2.26%, Italy's Foreign Ministry said on Thursday.

The duties would have been added to the 15% tariffs already in place on most European Union imports.

US President Donald Trump had threatened to impose tariffs of up to 92% on Italian pasta, accusing 13 producers, including Barilla, La Molisana, and Pastificio Lucio Garofalo, of selling at unfairly low prices.

Italian pasta would have faced a combined tariff of 107% under the 92% duties proposed in October, on top of existing EU levies of at least 15%, but the revised measures would lower the total rate to around 24%-29%.

Italy accounts for an estimated $770 million in annual pasta sales to the US.

The Commerce Department told CNN that the final tariffs, due to be announced on March 12, reflect an investigation into alleged underpricing and were lowered after reviewing additional comments submitted following its preliminary ruling.