World markets are trying to figure out how to do business with the American economy as the Trump administration is imposing trade tariffs on practically the whole world. The situation is evolving as countries react with retaliatory tariffs or try to negotiate with the U.S. From a business perspective, companies are monitoring how their bottom line will be impacted. Economists predict the cost of tariffs will be passed down to the consumer. Right now, Italy is facing a 20% tariff on products imported to the U.S, although it momentarily dropped to 10% after Trump announced a 90-day suspension in the application of additional duties. Italianfood.net contacted Agritalia, a leading logistics company that ships authentic Italian food products from Italy to the U.S., for comment on how the company is positioning itself to respond to President Trump’s tariffs.
THE STRATEGY OF AGRITALIA
“We were prepared to assess the tariffs imposed on our country. With nearly four decades of experience in food distribution in the United States, we have learned to recognize signs of change and to be ready to face it. Whether the duties apply to specific products, as they did in 2018-2019, or broadly, as they do now, Agritalia’s response remains the same: We highly prioritize the continuity of supply for all our customers,” says Leo Nucera, Sales & Marketing Director at Agritalia.
He added, “Thanks to our automated replenishment program, we implemented a robust plan to cooperate with all our stakeholders months ago, as we are firmly committed to supporting them in finding the most appropriate solutions to avoid disruptions in business and the supply chain. At the same time, we want our stakeholders to keep having strong confidence in the reliability of the supply chain coming out from the European Union, the same we showed in recent crises like the pandemic and the Russia – Ukraine war. As we navigate this landscape, we trust that the governments of the European Union will collaborate constructively with President Trump to find a solution that serves the best interests of all parties involved.”
U.S. SUPERMARKETS LANDSCAPE
U.S. shoppers were already stockpiling goods before tariffs set in. A nonpartisan research group, The Tax Foundation, predicts a roughly $2,100 tax increase per household in 2025 alone under President Trump’s proposed tariffs. But what about prices at the supermarket? Italianfood.net contacted Phil Lempert, editor of supermarketguru.com and food industry analyst. Lempert estimates that, depending on the food category, consumers might see the most dramatic price increase with produce: “I believe about half of the products in a supermarket will be affected and increase anywhere from 10-50%.” Specifically, when it comes to imported authentic Italian food products, Lempert says it depends on the categories but he thinks olive oil, cheese, meats, and wine will probably increase a lot. Lempert offers this advice for Italian producers bracing for tariffs: “My recommendation would be to focus on their key products, promote their authenticity, and try not to sell their complete lines. The focus should be on differentiating themselves from similar products that can be made domestically – like fresh pasta, for example. I believe we will see retailers cut their offerings in order to lower their costs of carrying inventory.”