Italy Faces Potential Economic Challenges from U.S. Tariffs Italy could face a substantial economic impact with the potential loss of 20 billion euros in exports and 118,000 jobs if the United States imposes a 10% tariff on all European products. According to a report by Reuters, Emanuele Orsini, President of Confindustria, Italy’s main business lobby, emphasized the severe implications such tariffs would have on the Italian economy.
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Italy’s export profile is heavily reliant on machinery, transport means, and leather goods, which are more price-sensitive compared to luxury products. Orsini highlighted that the proposed 10% tariff would effectively become a 23.5% duty due to the depreciation of the dollar against the euro, impacting the competitiveness of Italian products in the U.S. market.
Despite Italian Prime Minister Giorgia Meloni’s assurances that the tariffs might not significantly harm Italian businesses, Orsini’s concerns reflect a broader apprehension within the business community. The European Commission is working towards mitigating the effects by negotiating immediate relief in key sectors, although it acknowledges the 10% tariff as unavoidable.
Data from the IndexBox platform indicates that Italy’s machinery sector alone could see a significant downturn, affecting both production and employment rates. The euro’s recent appreciation by approximately 9% against the dollar further complicates the trade dynamics, potentially leading to higher costs for U.S. importers of Italian goods.
