New possible import tax on Italian pasta worries local businesses
The possibility of a 107% tariff comes after the U.S. Commerce Department launched an anti-dumping review targeting Italian pasta, claiming it's sold below market prices.
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Italian pasta could soon become more expensive because of a possible tariff.
The possibility of a 107% tariff comes after the U.S. Commerce Department launched an anti-dumping review targeting Italian pasta, claiming it's sold below market prices.
The government is weighing tariffs as high as 92% on top of the 15% imposed on most European exports.
A decision is expected in January, but it already has businesses on edge, like Pino's Italian Food Market in Dix Hills.
Pino's Italian Food Market makes some of their pasta products in house. But other than that, all of it comes right from Italy.
"It's a big item," says owner Paul Barbieri.
But with the possibility of a triple digit tariff, they're starting to get worried, especially since they've already had to raise prices on some items because of tariffs.
They're doing everything they can to keep their prices from rising.
"We had direct connections with importers so we spoke to them and they were able to fill a container from Italy directly for three of our stores so it was a big investment but it was worth it," says Barbieri.
But they're worried that supply might be gone by the end of the year. Then, they may have consider raising prices, which economic experts say could hurt the consumer.
"If they're faced with that kind of tariff, yeah, there's going to be a sharp increase," says Martin Melkonian, adjunct associate professor of economics at Hofstra University. "Pasta has a certain elasticity of demand, meaning that a lot of the price will be absorb by the consumer."
But experts say this wouldn't just affect you at the grocery store, but also at restaurants.
"I don't think they're going to cut back in terms of quality. They would lose their reputation to do that but I think it will have an impact on prices," says Melkonian.
But for now, businesses like Pino's are trying to be a step ahead
"We're a little worried," says Barbieri. "We're trying to hang in there with what we have."
