Many Italian companies now view China as a more appealing market than the U.S. amid uncertainty brought about by the U.S. administration's tariff hikes, actively expanding their presence in the Chinese market following the U.S. imposition of "reciprocal tariffs".
Italy's exports to the U.S. accounted for 10 percent of the country's total exports in 2024, making the U.S. the top non-EU destination for Italian goods and the second overall after Germany, according to data from the Italian National Institute of Statistics.
Italy is recognized globally as a leading exporter of tomato paste, having built a strong reputation for its high-quality products.
Gustarosso is a century-old Italian brand that cultivates and produces around 1,000 tons of San Marzano tomatoes each year. In response to the recent tariff threats, Edoardo Ruggiero, Gustarosso's owner, noted that U.S. President Donald Trump's tariff hikes could significantly impact Italian exports.
"At Gustarosso, we produce around 1,000 tons of San Marzano tomatoes, with about 10 percent -- roughly 100 tons -- exported to the U.S. Unfortunately, for every million euros in exports, we now pay about 160,000 euros in tariffs. If a three-kilo can is priced at six euros, the tariffs add an extra euro, which is no small amount. We've already agreed to offer minor discounts, but with our American partners squeezing our profit margins, we need to fully understand where this 50-percent tariff situation is headed, as it could create serious challenges. If we export a product at six euros to the U.S., there are extra costs incurred by the time it reaches restaurants. If we can't keep production costs down, we will unfortunately have to raise prices even further," he said.
Therefore, Ruggiero said he is placing greater emphasis on the Chinese market, hoping to enhance their presence and boost exports further.
"The Chinese market is one of the most important markets in the world, making it essential to establish new relationships and connections there. We also believe there is a growing recognition of our products in China, especially San Marzano tomatoes, which have become a premium item everyone wants to have. That's why we're very interested in the Chinese market. We're trying to expand our presence and our exports even more, because it may prove to be more appealing than the U.S. market. Our dream is to export most of our products to China, because it is a major market that truly values quality. Accessing Chinese ports like Shanghai would allow us to distribute San Marzano tomatoes to various Chinese provinces, representing the best possible scenario for us and ensuring satisfaction for both us and our farmers," he said.
On May 23, Trump threatened a 50 percent tax on all imports from the European Union.
China a more appealing market than U.S. amid uncertainty triggered by U.S. tariff hikes: Italian tomato producer
