Italy’s Farnesina Acts Against Double Duties on Parmigiano Reggiano and Grana Padano

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US-EU Trade Talks Rattled by New Tariff Dispute Over Italian Cheeses

New York, NY – August 28, 2025 – Tensions are rising within the trade agreement between the United States adn the European Union following reports of unexpectedly high tariffs being applied to popular Italian cheeses, Grana Padano and Parmigiano Reggiano, at the ports of New York and New Jersey. The Italian government is urgently seeking clarification and intervention.

Tariff Discrepancies Spark Concern

For decades, these cheeses have been subject to a 15% duty. In April of 2025, a further 10% increase brought the total to 25%. An agreement reached on August 7th aimed to simplify duties, aligning US rates for Parmigiano reggiano to 15%. However, recent applications of tariffs at key US ports appear to be contradicting these agreed-upon terms. The issue stems from the complexities surrounding imports of hard cheeses to the US.

The Complexities of Cheese Imports

The current agreement allows a specified quantity of European cheese to enter the US market with a 15% tariff. Beyond this quota, a fixed duty of $2.20 per kilogram is applied. The present disagreement revolves around the correct application of these rates for imports outside of quota.

Diplomatic Action underway

Italian Foreign Minister Antonio Tajani has requested the engagement of the “Task force Dazi della Farnesina,” activating the ministry to protect Italian exports. The Italian Embassy in Washington and the Directorate general for Commerce of the European Commission have been notified and are taking steps to resolve the issue.

Industry Response and Possible Impacts

The consortiums representing Parmigiano Reggiano and Grana Padano have expressed concerns that an additional 15% tariff is being incorrectly applied, effectively doubling the duty on some shipments. Officials worry that failure to clarify this misinterpretation could threaten approximately 35% of Grana Padano and Parmigiano Reggiano exports to the USA, representing around 200,000 wheels weighing 39-40 kg each.

Did You Know? Italy‘s Parmigiano Reggiano and Grana Padano cheeses are Protected Designation of Origin (PDO) products, guaranteeing their quality and origin.

Here’s a quick comparison of the tariff structure:

Tariff Type	Rate
Within Quota	15%
Over Quota	$2.20 per kg OR 15% (whichever is higher)

Looking Ahead: The prompt resolution of this issue is vital for maintaining stability in US-EU trade relations and ensuring continued access to two of Italy’s most iconic products for American consumers.

Do you think this tariff dispute will impact broader trade relations between the US and EU?

What steps should be taken to simplify import regulations and avoid similar misinterpretations in the future?

What specific international trade agreements are being cited by Italy in it’s challenge against the double duties on Parmigiano Reggiano and Grana Padano?

The Dispute: A Breakdown of double Taxation

For years, Italian cheese producers – specifically those crafting the world-renowned Parmigiano Reggiano and Grana Padano – have faced a complex issue: double duties levied on exports to certain international markets. This isn’t a new problem, but recent, decisive action by Italy’s Ministry of Foreign Affairs (Farnesina) signals a turning point.The core of the dispute revolves around the application of both import duties and specific charges related to the Protected Designation of Origin (PDO) status of these cheeses. Essentially, some countries were treating the PDO certification as a separate, taxable element, effectively imposing a double financial burden.

Farnesina’s Intervention: Diplomatic Pressure and Legal Challenges

The Farnesina has taken a multi-pronged approach to address this issue, employing both diplomatic pressure and legal challenges. Key actions include:

Direct Engagement with Trading Partners: Italian diplomats have engaged in direct talks with governments imposing the double duties, highlighting the inconsistency with international trade agreements and the principles of fair competition.

Formal Complaints to the WTO: Italy has filed formal complaints with the World Trade Association (WTO), arguing that these duties constitute a non-tariff barrier to trade and violate WTO rules.

Support for Producer Consortia: The Farnesina is providing legal and financial support to the Consorzio del Formaggio parmigiano Reggiano and the Consorzio Tutela Grana Padano in their efforts to challenge the duties in international courts.

Negotiating Bilateral Agreements: Efforts are underway to negotiate bilateral agreements with key trading partners to clarify the treatment of PDO status and eliminate the double taxation.

Impact on Parmigiano Reggiano and Grana Padano Exports

The double duties have substantially impacted the competitiveness of Parmigiano Reggiano and Grana Padano in affected markets.This has resulted in:

Increased Costs for Importers: Importers face higher costs, which are frequently enough passed on to consumers, reducing demand.

Reduced Export Volumes: The increased costs have led to a decline in export volumes, impacting the livelihoods of Italian cheese producers.

Market Share Erosion: Competitors from countries not subject to the double duties have gained market share.

Threat to PDO Integrity: The dispute raises concerns about the value and recognition of PDO certifications if thay are subject to arbitrary taxation.

Countries Involved and Specific Cases

While the issue affects several markets, some countries have been especially problematic.

Australia: Australia has been a focal point of the dispute, with producers alleging meaningful financial losses due to the double duties. legal challenges are ongoing.

Canada: Similar concerns have been raised regarding import practices in Canada, prompting diplomatic intervention.

Japan: While generally supportive of PDO protections, Japan’s application of import procedures has been scrutinized for potential inconsistencies.

United States: Though not a primary source of double duties, the US market is crucial for Parmigiano Reggiano and Grana padano, and the Farnesina is proactively working to prevent similar issues from arising.

Benefits of resolving the Double Duty Issue

Successfully resolving this dispute will yield significant benefits for the Italian economy and the Parmigiano Reggiano and Grana Padano industries:

Increased Exports: Eliminating the double duties will boost export volumes, generating more revenue for Italian producers.

Enhanced competitiveness: Italian cheeses will become more competitive in international markets, regaining lost market share.

protection of PDO Status: A favorable resolution will reinforce the value and integrity of PDO certifications, protecting the reputation of these iconic Italian products.

Economic Growth: Increased exports will contribute to economic growth and job creation in the Italian dairy sector.

Practical Tips for Exporters and Importers

For businesses involved in the trade of Parmigiano Reggiano and Grana Padano,here are some practical tips:

1. Stay Informed: Regularly monitor updates from the Farnesina,the WTO,and the producer consortia regarding the status of the dispute.
2. Document Everything: Maintain detailed records of all import duties and charges paid, as this documentation may be crucial for legal challenges.
3. Seek legal Advice: Consult with legal experts specializing in international trade law to understand your rights and options.
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