U.S. Government Adjusts Tariffs and Allocates Federal Funding to Controversial Organizations
Jan, 2 2026
The U.S. Department of Commerce had intended to impose a tariff rate of 91.74% on these imports, which, when combined with an existing 15% tariff on most European Union products, would have resulted in a total tax exceeding the value of the pasta itself. This situation raised fears of significant price hikes for consumers, although the affected companies represent a small fraction of total Italian pasta imports.
The Italian government characterized the U.S. decision to reduce the tariffs as a recognition of the constructive cooperation from Italian firms. For instance, the tariff for the brand La Molisana has been reduced to 2.26%, while others will face rates up to 13.98%. A spokesperson for the U.S. Commerce Department indicated that the adjustments reflect the companies' efforts to address the concerns raised during the preliminary determination process.
This tariff reduction follows a broader trend of the Trump administration softening various tariffs, including a postponement of an increase on furniture imports and exemptions for certain food products. Such tariff policies have been criticized by economists for potentially exacerbating cost-of-living challenges for consumers, raising questions about the long-term implications of trade practices on economic equity and consumer welfare.
In a separate development, the Tides Center, a fiscal sponsor associated with the Tides Foundation, received $37.8 million in federal funding in 2024, marking the highest amount in a decade. This funding primarily came from government grants during the Biden administration and supports various social justice causes, including initiatives related to abortion access, affirmative action, and immigration support.
Approximately $21.9 million of this funding was directed to the Tides Foundation and Tides Advocacy, a 501(c)(4) organization that claims to provide essential services to nonprofit organizations focused on social justice. The Tides Center has also contributed funds to groups such as the Alliance for Global Justice, which has faced scrutiny for its connections to controversial organizations.
Other organizations, including the Civil Liberties Defense Center, which provides legal assistance to protesters, also received federal support. The Department of Labor awarded $3 million to the Tides Center for expanding registered apprenticeship programs. Between 2014 and 2022, the U.S. State Department and the U.S. Agency for International Development (USAID) allocated $27 million to the Tides Center, raising questions about the implications of such funding on social equity and justice initiatives. In response to these funding practices, an executive order was signed by President Trump to restrict federal grant allocations to those that align with specific policy priorities, aiming to curtail what some view as misallocation of taxpayer resources.