Italy Faces Heavy Impact as U.S. Tariffs Hit Businesses

03 Apr, 2025

Italy’s Prime Minister Giorgia Meloni and the country’s top business lobby have warned that new U.S. tariffs will significantly impact Italian exports. With the expected announcement of sweeping U.S. tariffs by President Donald Trump, Italian industries fear higher costs, disrupted trade, and retaliatory measures.

Meloni highlighted the severe consequences for Italian producers, emphasizing the need for “adequate responses” to protect the country’s export-dependent economy. In 2024, Italy recorded a trade surplus of 39 billion euros with the U.S., making it one of the eurozone's top exporters. However, with the economy already facing slow growth, new tariffs could worsen the situation.

Business group Confindustria revised Italy’s 2024 economic growth forecast to just 0.6%, half the government's target. This follows modest growth of 0.7% in both 2023 and 2024. Analysts predict further stagnation, especially if trade tensions escalate. Confindustria warned that in a worst-case scenario, where U.S. tariffs reach 25% on all imports and 60% on Chinese goods, Italy’s growth could plummet to 0.2%.

Industries most at risk include pharmaceuticals, automobiles, machinery, fashion, and food and wine. Confindustria President Emanuele Orsini stressed that tariffs pose a significant challenge for Italian exporters, calling them another obstacle for businesses.

Despite the threats, Meloni and Italian officials are advocating for dialogue over retaliation. Italy’s EU Affairs Minister Tommaso Foti emphasized the importance of a calm and strategic response, urging the European Union to avoid escalating trade tensions with the U.S.

As global trade uncertainty rises, Italian policymakers and businesses are closely monitoring the situation, hoping to minimize economic fallout while maintaining strong export ties with the U.S.

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