Italy Faces Serious Economic Risks from Potential U.S. Tariffs

MILAN (Reuters) – Italy risks losing 20 billion euros ($23.6 billion) in exports and 118,000 jobs next year if the U.S. imposes tariffs of 10% on all European products, warned the head of the main Italian business lobby on Wednesday.

Emanuele Orsini, President of Confindustria, stated in an interview with Il Corriere della Sera that Italy’s exports are not limited to luxury items, which have low price sensitivity, but include machinery, means of transport, and leather goods.

While Italian Prime Minister Giorgia Meloni has played down the potential impact of such tariffs, calling it not particularly harmful, Orsini expressed that a 10% tariff would be unsustainable for the Italian economy.

He elaborated that the effective rate would be 23.5% due to the depreciation of the dollar against the euro since the election of U.S. President Donald Trump, with this impact estimated at 13.55%.

“Products priced at 100 euros last year are now costing U.S. customers about 123 euros. We anticipate severe setbacks,” he said.

A July 9 deadline is approaching for countries to finalize trade agreements with Washington. The European Commission, which manages EU trade policy, considers the U.S.’s baseline tariff of 10% unavoidable but urges for immediate relief in critical sectors as part of any deal, according to diplomats.

Since April, the euro has risen about 9% against the dollar, bolstered by investor confidence in the EU’s military and industrial aspirations amid concerns over Trump’s unpredictable economic strategies.

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