The consequences of US duties on Italian cheese exports

Italian cheese producers lost about 60 million euros in 2020 due to tariffs and Covid crisis. However, the USA confirms as a key market for Italy’s dairy sector
The consequences of US duties on Italian cheese exports

Due to a trade war that they had no part in triggering, Italian dairy producers have been forced to bear additional 25% duties on some of the most exported and valuable Italian cheeses in the US, losing competitiveness and shelf space in American distribution. In just one year, more than sixty million euros of turnover were lost.

“Thanks to the four-month suspension of tariffs, the first step – important but not definitive – has been taken for what will hopefully be a ‘trade peace’” – underlines the Italian dairy industry association Assolatte. “We have to keep working for the definitive elimination of additional duties.”

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THE WEIGHT OF US MARKET FOR ITALIAN CHEESES EXPORTS

Duties, closure of the Ho. Re. Ca. channel due to Covid, depreciation of the dollar currency value and increase in freight costs had a dramatic effect on Italy’s cheeses sales, with double-digit drops for the most exported cheeses. Grana Padano PDO and Parmigiano Reggiano PDO sales dropped by -22% (in value), Provolone Valpadana PDO by -16%, Asiago PDO by -28%, and Gorgonzola PDO by -13%.

As Phil Marfuggi – former president of the US Cheese Importers Association – confirms, the additional duties have forced American consumers to turn to domestic products thus compromising future consumption choices.

The United States confirms itself as a key destination for Italian cheese exports. Italy is in fact its top foreign supplier and the US is the top non-EU destination for Italian companies. In 2019 the US market was worth about 38,000 tons of exported products, which dropped to 31,000 tons in 2020.

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