Commerce chief scales back pasta tariffs amid midterm price-inflation worries

President Donald Trump’s push for steep tariffs on foreign goods ran into internal resistance as the Commerce Department, led by Secretary Howard Lutnick, softened its stance on Italian pasta duties to avoid inflating grocery prices before the upcoming midterm elections. A Commerce investigation in September uncovered that leading Italian pasta producers were selling below market value in the United States, prompting an initial proposal for duties as high as 91.74 percent.

Lutnick, upset by media reports linking the case to inflation, reportedly micromanaged the process, directing staff to lower the rates. Senior officials instructed teams to recalculate tariffs deemed excessive, resulting in final duties ranging from 2.65 percent for La Molisana to 7 percent for Garofalo, with other firms facing a 5.21 percent levy. The change has alarmed career commerce officials and trade lawyers, who argue that tariffs should be based on solid data rather than electoral considerations. The episode illustrates how concerns about price stability and voter sentiment are beginning to temper the administration’s broader trade-war agenda.