EU backs Italian pasta-makers in pasta war with US
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The EU pledges support for Italian pasta-makers, including Barilla, as the US threatens anti-dumping tariffs of up to 107%.
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A man eats pasta in a restaurant in Milan, northern Italy, Thursday, June 8, 2023. (AP)
The European Union has pledged to stand by Italian pasta producers, including global giant Barilla, as they face potential US trade tariffs of up to 92%, the Financial Times reported on Monday, citing European Commission trade spokesperson Olof Gill.
According to the report, 13 Italian pasta manufacturers are expected to be hit with anti-dumping duties beginning in January 2026, following Washington’s accusations that they have been selling pasta in the US at unfairly low prices. These measures would be imposed in addition to the 15% duties already applied to all EU imports under the current US-EU trade deal, raising total tariffs on Italian pasta exports to as high as 107%.
The Italian government has strongly rejected the dumping allegations, calling them “baseless,” and has lodged formal complaints with both Washington and Brussels, demanding that the punitive measures be dropped.
“The European Commission, in close coordination with the Italian government, is engaging with the US on this investigation and will intervene as necessary,” Gill told the newspaper.
EU could challenge US through WTO
If the accusations are proven unfounded, the EU may challenge the US through the World Trade Organization (WTO), though Washington has a track record of ignoring WTO rulings, FT noted.
Industry experts warn that the looming tariffs could deal a serious blow to Italy’s food exports, as the United States imported around €671 million ($785 million) worth of Italian pasta in 2024 alone.
The trade dispute follows the July 27 deal between European Commission President Ursula von der Leyen and US President Donald Trump, which imposed a 15% tariff on most EU exports to the United States. In return, Brussels agreed to purchase $750 billion worth of US energy products, a move critics say has tilted the transatlantic trade balance in Washington’s favor.
EU-US trade deal under threat
The trade agreement signed between the United States and the European Union in July was designed to de-escalate tensions by capping tariffs on most EU exports to the US at 15%.
However, that optimism has eroded as the Trump administration expanded 50% tariffs to include a wider range of steel and aluminum-containing products, affecting machinery, motors, pumps, and construction equipment.
What began as a 50% tariff on basic metals and components like screws has grown to encompass hundreds of products. These include motors, pumps, machine tools, and construction equipment, creating a complicated and costly environment for European exporters.
An unfavorable deal
The trade agreement sparked backlash across Europe from the start. French Prime Minister François Bayrou called it "a dark day," while German Chancellor Friedrich Merz warned of "considerable damage" to the German economy. Hungarian Prime Minister Viktor Orbán said, "Trump ate von der Leyen for breakfast." The European Parliament has raised alarms over the loss of digital autonomy and strategic independence, further complicating unanimous ratification.
Bernd Lange, head of the European Parliament's trade committee, emphasized that there is "no security and predictability" under the current terms. He questioned the fairness of zero tariffs on US motorbikes while European machinery is taxed up to 50%.
Additionally, the deal has reinforced, rather than resolved, the EU's economic dependencies on the US. With key infrastructure, technology, and security links tied to Washington, Europe faces increased exposure to US policy shifts. Additionally, threats to impose tariffs over EU digital tax rules show the ongoing risks of coercion.
The US and EU maintain the world's largest bilateral trade and investment relationship, with trade in goods and services reaching approximately €1.6 trillion ($1.5 trillion) in 2024. This equates to daily trade flows of €4.2 billion, making each economy the other's largest trading partner.
