How wheat, cheese, and tomato tariffs impact your pizzeria

Here’s what you need to know about the new US tariffs on European Union and Canadian food products

In early April 2025, the US administration announced new tariffs targeting imports from several trade partners, including the European Union (EU) and Canada. These tariffs impose a 20% duty on most EU-origin goods and a 25% duty on certain Canadian imports. Notably, this affects agricultural products such as flour, cheese, and tomato-based items. This move is intended to mirror what the US views as the EU's and Canada's own high tariffs and barriers on products, especially in agriculture (dairyherd.com).

No EU member state is exempt from these tariffs — the action treats the EU as a whole, applying uniformly to all 27 member countries​ (foodnavigator.com). By contrast, the UK, no longer in the EU, was only subject to the 10% base tariff, not the higher 20%​ (foodnavigator.com). Thus, all EU countries that export flour, cheese, or tomatoes to the US are affected at the 20% rate.

General exemptions and product code exclusions

There is no general exclusion for grains, flour, dairy, or produce. These fall under “almost all other goods” now subject to the tariffs​ (reuters.com). In fact, US food industry groups have criticized the blanket tariffs for not exempting key foods, warning of higher consumer prices for everyday groceries like cheese and canned goods​ (npr.org). Flour, cheese, and tomato products from the EU and Canada receive no special exemption and US importers will now pay the 20% and 25% duties on these items.

However, a few narrow exceptions can reduce or avoid the tariff for certain shipments:

• US-Content Rule: If an imported EU product contains a significant portion of US-origin inputs, only the non-US portion is dutiable. Under the rule, at least 20% US content is needed to get partial relief. For example, a good with 25% US content pays the tariff on only 75% of its value​. This is not a blanket exemption but a value-based reduction. In practice, it might help EU food products that use US ingredients (e.g., an EU snack bar using American almonds would only be taxed on the non-US ingredients). For most flour, cheese, or tomato products — which are typically wholly locally sourced — this offers little relief.

• Tariff-Rate Quotas (TRQs): Pre-existing WTO quotas allow limited quantities of certain EU agricultural goods (like specific cheeses) to enter the US at low or zero duty. Those quotas still exist, but the new 20% tariff is an additional duty applied on top. There’s no indication that in-quota imports are exempted from the 20% (the Executive Order imposes it on “all articles” from the EU) — meaning even quota cheese likely incurs the extra duty. Thus, TRQ arrangements do not shield EU exporters from the new tariff, except to the extent they still pay the lower in-quota base rate before the 20% is added.

In summary, no specific flour, cheese, or tomato item was singled out for exclusion by HS code, and the broad tariff covers these categories fully. 

Flour and milled grain products

Wheat flour and other milled grain products from the EU/Canada are subject to the new tariffs. There was no exemption for flour (HS 1101) or related cereals in the Annex II exclusion list. This means European and Canadian flour exporters must pay the 20%/25% respectively duty, raising the cost of specialty flours imported into the US.

The impact, however, varies by company and country:

• Italy, known for specialty “Tipo 00” wheat flour used in pasta and pizza, is a significant supplier of flour to the US In 2023, Italy accounted for about 12.6% of US wheat flour imports (roughly $38 million worth)​ trendeconomy.com, second only to Canada. Italian millers like Antimo Caputo (Naples) and Grandi Molini Italiani (one of Italy’s largest flour producers) have ridden a wave of US demand for premium flour. Under the new regime, these exporters will see their prices to US buyers climb by 20%, potentially damping sales. No Italian or EU flour producers are exempt by law, so all must contend with the tariff.

• France, Germany, and other EU countries also export smaller quantities of flour to the US, often for artisan baking or ethnic foods. They too will be subject to the tariff, though their volumes are modest. For example, France’s Grands Moulins de Paris and Germany’s GoodMills Group (Europe’s largest milling company) ship some niche flours to the US; these will now incur the duty unless they restructure supply.

• Canada, the largest supplier of wheat to the US in the world, is subject to a 25% tariff on all exports to the US. 

Why no exemption? Flour is a processed agricultural product that the US itself produces in abundance, so US negotiators saw little downside in tariffing it. The EU’s tariffs on imported flour can be substantial (the EU protects its grain millers), and the US move is explicitly reciprocal. In short, there was no strategic need to spare EU flour — American bakeries can source domestically. Thus, EU/Canada flour was included in the tariff net by default.

Notably, a few large EU firms have mitigated the impact by localizing production in the US — effectively sidestepping the tariff. A prime example is Barilla (Italy), one of the world’s biggest pasta and flour-based food companies. Barilla built massive production plants in Ames, Iowa and Avon, New York, and today much of the Barilla pasta sold in the US is actually made in America​ (foxbusiness.com). This means Barilla’s US business faces little disruption from the tariff, since it imports far less pasta or flour than it used to. In the 1980s, Barilla and others were hit by heavy US pasta duties, which spurred such localization (​foxbusiness.com).

Now that foresight pays off. Barilla (Italy) is largely not subject to the new import tariff on its flagship flour products because it can supply the US market from domestic factories. The rationale here is not a legal exemption but a strategic shift — by producing inside the US, Barilla avoids import duties entirely. 

In summary, all EU-origin flour shipments face the 20% tariff, and Canadian shipments face a 25% tariff, with no product-code exemptions.

Cheese and dairy products

Cheese is one of the highest-profile targets of the tariffs. The EU is a powerhouse in specialty cheeses, and the US is a huge market for them — so a 20%/25% hike is very significant. No exemptions or exclusions were granted for cheese or dairy in the tariff policy for the EU or Canada. In fact, the US explicitly included cheese in the list of affected EU/Canada food exports​ (foodnavigator.com). The new duty applies across all types of cheese coming from any EU country and Canada.

The major EU cheese-exporting nations — Italy, France, Spain, the Netherlands, Denmark, Ireland, and Germany — are all subject to the 20% tariff. According to the USDA, the top sources of US cheese imports are Italy, France, Spain, and the Netherlands, and all now face the full 20% duty​ (npr.org). This means beloved products like Italian Parmigiano-Reggiano, French Brie and Roquefort, Spanish Manchego, Dutch Gouda, and Irish cheddar will all become costlier in the US market. No EU country’s cheese was spared.

All cheese imported from Canada is now subject to a 25% tariff. 

Rationale: US trade officials view EU/Canadian dairy tariffs on American goods as quite high, and the EU tightly restricts dairy imports (e.g., limited cheese quotas). By imposing a reciprocal 20% on EU cheese, the US is both leveraging for negotiations and arguably protecting its own dairy industry. An American dairy trade group even noted that “20% reciprocal tariffs are a bargain for the EU” given how restrictive the EU’s barriers are to US dairy exports​ (dairyherd.com). In short, cheese was deliberately not exempted to maximize pressure on the EU and to even the playing field perceived by US producers.

Impact on companies: Virtually all the big European cheese companies and cooperatives will be impacted — none get a pass. For instance:

• Parmigiano Reggiano Consortium (Italy) — This consortium of parmesan cheese producers sends substantial volumes to the US. The new tariffs hit Parmigiano and Grana Padano hard, threatening higher retail prices. Industry leaders like Stefano Berni (Director General of the Grana Padano Consortium) warned that a 20% duty will discourage US consumers or force them to pay more, and could even encourage counterfeit “Italian-style” cheeses as expensive imports create a market gap​ (news.italianfood.net). There is no product exclusion for these aged cheeses — they squarely fall under the tariff. Italian cheesemakers have been stockpiling cheese in the US in advance — rushing shipments before the tariff effective date — to mitigate short-term damage​ (news.italianfood.net). This stockpiling underscores that no one is exempt: producers are scrambling with private strategies since policy relief isn’t available.

• Lactalis (France) — the world’s largest dairy company (brands include Président, Galbani, and Parmalat) — exports many French and Italian cheeses to the US like brie, camembert, mozzarella, and ricotta. Lactalis’s EU-made cheeses will all incur the 20% tariff. However, Lactalis has a large US manufacturing footprint as well (it even owns several American cheese plants, producing mozzarella, cheddar, and more domestically). For cheeses it already makes in Wisconsin, Idaho, or New York, Lactalis won’t need to import those, so those products remain tariff-free. But for its specialty imports from Europe, Lactalis has no exemption — it may respond by shifting more production to the US or accepting a hit on volume.

• Arla Foods (Denmark) — a major Northern European dairy cooperative exporting Danish blue cheese, Havarti, and specialty butters to the US Arla’s exports from Denmark and Germany now face the tariff, raising their cost. Arla, too, has some production in the US (it makes cream cheese in Wisconsin via a partnership), but European-made cheeses like Havarti will be taxed.

• FrieslandCampina (Netherlands) — known for Gouda and Edam, will see those Dutch exports taxed. No exclusion was granted for particular cheese varieties or fat contents; all fall under HS 0406 and thus under the tariff.

• Bel Group (France) — producer of Laughing Cow and Babybel cheeses — will see tariffs on any French-made cheese it ships in. Interestingly, Babybel opened a plant in Kentucky a few years ago to produce Mini Babybel wheels locally. As a result, Babybel cheese sold in the US is made in Kentucky, not imported — those are not subject to the import tariff. This is another case of a company avoiding the tariff impact by localizing production (a strategy beyond the scope of official exemptions). But for products Babyel still imports (certain specialty French cheeses), the 20% duty applies fully.
  
  

In essence, the EU’s and Canada’s top cheese exporters and companies are all affected and none are exempt by rule. The nature of cheese (a high-value, finished food product) made it a direct target of the US trade action, with no carve-outs for specific types. The only companies “unaffected” are those that anticipated trade friction and produce on US soil, thereby sidestepping these tariffs on their biggest sellers. European firms that haven’t localized must now contend with a 20% cost surge on their US-bound cheeses — a serious challenge in a price-sensitive food industry.

Tomatoes and tomato-based products

Tomatoes, sauces, and preserves from Europe are also in the crosshairs of the new tariffs. The US included “fruit and vegetable preparations” in the affected product scope​ (foodnavigator.com). — a category that covers canned tomatoes, purees, pastes, ketchups, and sauces (HS chapter 20, e.g., 2002 and 2103 codes). No exemption was granted for tomato products or any specific food preparations under these headings. That means Europe’s and Canada’s tomato producers will face the 20% and 25% respectively tariff on their exports to America.

The EU’s leading tomato exporter by far is Italy. In fact, over 60% of Italy’s processed tomato production is exported abroad​ (news.italianfood.net), with the United States being a top destination. Iconic Italian San Marzano tomatoes, peeled plum tomatoes, passata, and other sauces are staples on US shelves (sold under brands like Mutti, Cirio, Cento, etc.). Under the new tariffs, all these Italian tomato products now carry an extra 20% duty when entering the US There were no product-code loopholes (for example, both whole canned tomatoes and tomato puree are covered). This will likely increase US prices for authentic Italian tomatoes and sauces, potentially steering some buyers toward domestic or alternative sources.

Major companies and implications:

• Mutti S.P.A. (Italy) — a leading Italian canned tomato and sauce producer that has aggressively grown in the US market in recent years. Mutti’s high-quality tomatoes (diced, crushed, and paste) are exported to American grocers and restaurants. With the tariff, Mutti’s products incur 20% higher landed cost. Mutti has no exemption or US factory (it strictly uses Italian-grown tomatoes), so it will feel the full effect. The company may need to either accept thinner margins or raise US prices. (Mutti’s CEO has been vocal about trade issues, though his concerns have focused on cheap imports from China — highlighting that Italian producers now face both Chinese competition at home and US tariffs abroad, a double squeeze.)

• Conserve Italia cooperative (Italy) — owner of brands like Cirio and Pomi. They export tomato puree, diced tomatoes, and passata to the US These products now have tariffs. Like Mutti, Conserve Italia processes 100% Italian-grown tomatoes for export; there’s no foreign content or alternative origin, so no relief from the duty. Italy’s industry association ANICAV has expressed concern that the tariffs will harm one of Italy’s most successful export sectors just after it hit record highs​ (news.italianfood.net).

• Other EU countries: Spain and Portugal also export tomato products (Spain’s Conesa Group and Portugal’s Sugal are large tomato processors). While Italy is dominant, Spain and Portugal together have a significant share of US canned tomato imports as well​
  (volza.com). Under the tariff policy, all EU-origin tomato products — whether Italian passata, Spanish tomato frito, or Portuguese diced tomatoes — are subject to 20% duty at US customs. No country or variety is exempt. (One slight consolation: some non-EU competitors like Turkey or Egypt might not face the exact same 20% tariff since the policy targets specific countries. For instance, Turkey was not listed at 20% in the US announcement, so Turkish tomato paste could theoretically undercut Italian with no extra US duty. This inconsistency worries EU producers.)

Why no exemption for tomatoes? Processed tomato products are a significant EU export and also a sector where US producers exist (California grows and cans a large volume of tomatoes). The US likely saw this as a chance to aid its domestic industry — by making imported European tomatoes pricier, US packers of canned tomatoes become more competitive. Moreover, the EU’s tariffs on imports of processed tomatoes from outside are themselves substantial, and Italy has lobbied to keep cheaper Chinese tomato paste out of Europe​ (scmp.com). The US tariff evens the score in a sense. Thus, no exclusion was granted for EU tomato sauces or preserves.

Under the proposed tariffs, Canadian tomato shipments will be subject to a 25% tariff. 

Summary of exemptions and non-affected producers

Summary table

Country	Product	Tariff Imposed	Exemption Status	Notable Companies
EU	Flour	20%	None	Antimo Caputo (Italy), Grandi Molini Italiani (Italy), Grands Moulins de Paris (France), GoodMills Group (Germany)
EU	Cheese	20%	None	Parmigiano Reggiano Consortium (Italy), Lactalis (France), FrieslandCampina (Netherlands), Greek feta producers
EU	Tomato Products	20%	None	Mutti S.P.A. (Italy), Conserve Italia (Italy), Conesa Group (Spain), Sugal (Portugal)
Canada	Flour	25%	None	Various Canadian producers
Canada	Cheese	25%	None	Various Canadian producers
Canada	Tomato Products	25%	None	Various Canadian producers

The table below summarizes major EU producers/exporters in flour, cheese, and tomato categories and whether/how they are exempt or not affected by the US tariffs:

Company (Country)	Product	Why Exempt or Not Affected
Barilla (Italy)	Pasta, Flour Products	Not subject to tariff on most pasta/flour sold in US — produces in Iowa and New York, so little need to import from Italy (​foxbusiness.com). (No formal exemption; avoids tariff via US production.)
Lactalis (France)	Cheese (Brie, Mozzarella, etc)	No exemption on EU-made cheeses — pays 20% on imports. But owns US dairy plants, so many cheeses for US market are made domestically (those incur no import tariff).
Bel Group (France)	Cheese (Babybel, etc)	Not subject for US-made products — built a Kentucky plant for Mini Babybel, supplying the US without import​ (news.italianfood.net). Imports of its European cheeses (e.g. Boursin from France) do pay the 20% tariff (no exclusion for those).
Grana Padano & Parmigiano Reggiano Consortia (Italy)	Aged hard cheeses	No exemption — subject to 20% tariff like all EU cheese​
Antimo Caputo (Italy)	Specialty wheat flour	No exemption — Italian milled flour (e.g. “00” pizza flour) now faces 20% duty. Caputo must either charge higher prices or find US milling partners. No special treatment in tariff code for flour​ (foodnavigator.com).
GoodMills Group (Austria/Germany)	Wheat flour, rye flour	No exemption — EU’s largest miller with some exports, now all EU-origin flour shipments to US incur 20%. (Primarily serves EU market, so impact is limited; US imports were minimal.)
Mutti (Italy)	Canned tomatoes, sauces	No exemption — 100% Italian-grown tomato products face 20% tariff at US entry (fruit/veg preparations are covered)​ (foodnavigator.com). No product code exclusions for tomato sauces.
Conserve Italia (Cirio) (Italy)	Canned tomatoes, paste	No exemption — All exports of Cirio tomato puree, diced tomatoes, etc. are dutiable at 20%. (Conserve Italia has no non-EU production to bypass the tariff.)
Ferrero (Italy)	Confectionery (uses flour/dairy)	Partially not affected — many products made in North America (e.g. Ferrero’s Canadian plant for Nutella, US plants for chocolates). EU-made Ferrero items imported will pay tariffs, but the company’s shift to local manufacturing insulates its key product lines.
Arla Foods (Denmark)	Specialty cheeses, butter	No exemption — Danish/European exports (blue cheese, Havarti) hit by 20% duty. (Has some US cream cheese production, but core aged cheeses are imported and thus taxed.)

Companies with US-based production can avoid the import tariffs on those locally made goods, while purely EU-based exports have no such exemption and are fully subject to the new 20% duties. All formal product exemptions (Annex II) are for non-food items​ (agfundernews.com), so food producers rely on supply-chain strategies rather than legal carve-outs to escape the tariffs.

Conclusion

The recent US tariffs have a significant impact on EU/Canadian exporters of flour, cheese, and tomato products, with no specific exemptions granted, leading to increased costs for these companies. Companies with production facilities within the US or in exempt countries are better positioned to mitigate the adverse effects of these tariffs.

In conclusion, the recent US tariffs on EU imports broadly encompass agricultural and food products like flour, cheese, and tomatoes. No EU country or major food category received a blanket exemption — the tariffs apply across the board at 20% for EU-origin goods​ and 25% from all Canadian-origin goods (foodnavigator.com). 

That said, some companies will not feel the impact because of how and where they operate. Firms like Barilla, Bel, and Lactalis have significant production in the United States, meaning they can supply the US market without incurring import tariffs on those particular goods. These are not “exemptions” granted by the tariff policy, but rather business decisions that shield those companies from the policy’s effects. In contrast, producers who rely on exporting directly from Europe — Italian flour exporters, European cheesemakers, and tomato canners — have no protection and will see their US-bound goods taxed at 20%. The rationale behind the lack of exemption is clear: the US aims to pressure the EU by hitting its iconic food exports while minimizing exclusions in the food sector to maximize leverage and potentially boost US agriculture. As negotiations evolve, these tariffs (and any retaliations) may be revisited, but for now Europe’s flour, cheese, and tomato exporters are largely on the hook for the new duties, with only careful supply chain maneuvers offering a way around them.