The giant warehouse of Ambriola Co Inc in West Caldwell, New Jersey, is chock-full of boxes and hard cheese shapes like the Parmesan Cheese, il Pecorino Romano and Grana Padano - and much more is coming.
Phil Marfuggi, president and managing director of Ambriola, a rib of Auricchio SpA, one of the largest Italian cheese producers, is among the many importers and shop owners in the US who are buying European cheeses before the new US tariffs come into effect on October 18.
On Wednesday, the Trump administration decided to increase import tariffs by 25% on cheeses and other EU products. From whiskey to wool, from pasta to cheese in retaliation for the EU aid given to the big players, manufacturers of Airbus-type aircraft.
American importers then began ordering millions of dollars worth of Parmigiano Reggiano wheels and other hard cheeses after the US trade representative's office added the cheese to its EU product list in July. potentially subject to tariff increases.
"When that list came out, that's when ... I started importing many more pieces of Parmigiano Reggiano, Provolone“Said Marfuggi, who has 21 containers full of cheese in addition to stock lying in the warehouse in Caldwell, which is about 15 miles west of Manhattan.
Marfuggi said it has ordered an additional $ 15 million worth of cheese that could be stored for over a year to ensure adequate supplies for existing customers and protect prices until the end of the year.
"I've created an inventory… because we have a goal behind us"He said.
The new tariffs could reduce US imports of EU cheeses worth $ 1,5 billion a year, about 30%, and raise prices across the country, said Marfuggi, who is also president of the Cheese Importer Association of America.
Some more expensive items will disappear from the stores, Marfuggi predicted, like Moliterno al Tartufo, a seasoned Italian cheese with an intense truffle flavor. Even Parmigiano Reggiano could be at risk if prices go up to $ 30 per pound.
The duties will hit consumer prices and ultimately jobs in the United States, said Ralph Hoffman, executive vice president of Schuman Cheese, one of the largest importers of Italian hard cheeses.
Besides 20.000 retail stores in the United States ranging from Costco Wholesale Corp (COST.O) to Wegmans Food Markets sell European cheeses. These cheeses generate revenue of around 3,5 billion for US companies, for about 20.000 jobs, including shop assistants, truck drivers and warehouse workers, Hoffman said. The new tariffs will impact 35% increases on some 200 cheeses that are sold in its 160 stores.
"We are waiting to see how importers will have to bear the costs "said Andrew Harvell, head of the company's cheese department. "Everything is still pending," he added, adding that Fresh Market has pre-ordered enough cheese to hold up the demands of the holiday season, but prices may need to be raised soon after.
Mike Bowers, owner of a cheese shop east of Washington, said he started stockpiling extra hard cheeses - some weighing 80 pounds - as early as July when USTR first announced it could impose new duties on cheese and other agricultural products.
His cheese counters, coolers, and large refrigerator are overflowing with cheese, but Bowers said his supplies won't be enough for the holiday season. “I am a small trader. I can't buy a $ 100 cheese and sell it for $ 50 ”.
Marfuggi said that however it was a relief when the news came that USTR opted for an increase in the 25% duties instead of the initially proposed 100%.
The fear, adds Marfuggi, is that American consumers will be able to choose cheaper domestic products, should the new tariffs persist on European products.