Italy Braces for Impact: New U.S. Tariffs Threaten Economic Stability

Italy's Prime Minister Giorgia Meloni and business leaders are concerned over new U.S. tariffs that threaten the country's exports and economic growth. With the trade surplus at risk, Italian industries reliant on U.S. sales face uncertainties, amid a call for dialogue over retaliation.

Italy's Prime Minister Giorgia Meloni and top business leaders have expressed deep concern over impending U.S. tariffs, expected to significantly impact the nation's exports and already fragile economy. The announcement from U.S. President Donald Trump could disrupt established trade protocols, leading to increased costs and potential retaliatory measures worldwide.

Speaking at a ceremony in Rome, Meloni emphasized the severe repercussions Italian producers might face, hinting at possible responses to protect Italy's export-driven economy. The country recorded a 39 billion euro trade surplus with the U.S. in 2024, but economic growth predictions are faltering, with Confindustria, the business association, revising its forecast downward from previous estimates.

As Italy navigates these uncertainties, with industries such as pharmaceuticals, autos, and fashion most vulnerable to U.S. market changes, government officials, including EU Affairs Minister Tommaso Foti, advocate for a diplomatic approach. He stressed the importance of dialogue over confrontation, suggesting strategic caution in Europe's response to U.S. tariffs.

(With inputs from agencies.)