Italian Economy Minister Giancarlo Giorgetti has cautioned against retaliatory tariffs on the United States following President Donald Trump’s announcement of imposing import duties on trade partners. Giorgetti emphasized the importance of de-escalation and maintaining a level-headed approach in dealing with the situation.
Italy, along with other European Union countries, is set to face a general tariff of 20% under Trump’s plans. The country, known for its large trade surplus with the United States, is now navigating the potential impact of these tariffs on its economy. Giorgetti stressed the need to avoid a tit-for-tat tariff war, which could be detrimental for all parties involved.
In order to mitigate the economic repercussions of the tariffs, Giorgetti suggested that the European Union should allow member states to increase spending within the bloc’s fiscal rules. Italy, with its high debt levels, often advocates for more flexibility in budgetary matters within the EU framework.
The Bank of Italy recently revised its growth forecast for the country, projecting a modest 0.5% growth for the year, well below the government’s earlier estimate of 1.2%. This economic slowdown further complicates Italy’s efforts to adhere to the EU’s deficit targets.
Giorgetti also highlighted the challenges posed by Italy’s mounting public debt, which is expected to climb to nearly 138% of GDP by 2026. The government is set to revise its growth projections and fiscal targets in the coming weeks to address the evolving economic landscape.
As discussions continue on how best to navigate the economic fallout from the tariffs and manage Italy’s fiscal constraints, Giorgetti underscored the importance of prudent decision-making in the face of uncertainty. Italy remains committed to finding a balanced approach that safeguards its economic interests while respecting EU regulations and fostering stability in the global trade environment.
