Subscribe
Italy Takes Cover with a Delegation to Washington
Italy is preparing to face the consequences of the introduction of US tariffs on European exports. The government, aware of the impact that these tariffs could have on the national economy, has sent a delegation to Washington to discuss the issue with the American authorities. Leading the initiative is Foreign Minister Antonio Tajani, who reiterated Italy’s commitment to dialogue with the United States, without neglecting the need to diversify the reference markets for Italian exports.
US President Donald Trump has announced the introduction of 25% customs tariffs on European products, a decision that could profoundly alter the balance of global trade. For Italy, the risk is significant: in 2024, exports to the US reached 65 billion euros, with a trade surplus of 39 billion. This makes Italy one of the countries most exposed to the new duties, considering that 22.2% of extra-EU exports are directed to the United States, a percentage higher than the European average of 19.7%. According to Prometeia estimates, the economic impact of American duties could range between 4 and 7 billion euros. The sectors most affected would be Italian beverages, cars, luxury vehicles and medicines, sectors that export a considerable portion of their production to the United States. In particular, Italian wine, and especially prosecco, risks being heavily penalized, as does the luxury sector, from bags to shoes, to industrial machinery, historically among the main drivers of Italian exports.
Antonio Tajani stressed that the Italian government is adopting a dual approach to manage the crisis. On the one hand, the goal is to strengthen its presence on alternative markets, such as Mexico, the Gulf countries, Indonesia, Japan and Turkey. On the other hand, the aim is to have a constructive dialogue with the United States to mitigate the effects of the new customs tariffs. “Our products are high quality and those who want an Italian product will buy it even if it costs more,” Tajani said, underlining how the reputation of “Made in Italy” can represent a guarantee for exporters. However, he also recognized that the issue must be addressed with extreme caution, considering that the exclusive competence on trade agreements belongs to the European Commission. Italy is therefore preparing to officially present its countermeasures on March 21 at Villa Madama, awaiting political developments that could change the current scenario. “Politics has yet to begin, let’s prepare but wait,” Tajani said, implying that every decision will have to be calibrated on the moves of the United States and the European Union. The ones who will be most affected by the duties will be small and medium-sized Italian businesses, which form the backbone of the national production system. Many of these companies do not have the financial resources to absorb the additional costs resulting from tariffs or to move production to the United States, as large multinationals could do. This could result in a decline in competitiveness and a reduction in exports, with possible negative repercussions on the labor market. According to forecasts by Sace, the agency that insures Italian exports, the annual impact of tariffs on Italian exports could reach 6.8 billion euros by 2026, further worsening the situation for many companies.
The introduction of tariffs by the United States represents a complex challenge for Italy, which finds itself having to defend its exports in a context of growing protectionism. The Italian government, aware of the difficulties, is trying to adopt a strategy based on market diversification and dialogue with the United States. March 21 will be a crucial date to understand possible Italian countermeasures and any negotiating openings by the United States. In the meantime, Italian companies will have to prepare for a future in which the cost of accessing the US market could be significantly higher.
Alessandro Fiorentino