Rome (Brussels Morning Newspaper) – Italy’s Economy Minister Giancarlo Giorgetti warned against putting retaliatory tariffs on the United States following U.S President Donald Trump’s imposition of sweeping tariffs on trade partners.
While addressing a business forum near Milan, Giorgetti stated that Italy is seeking a “de-escalation” with the U.S.
“We should avoid launching a policy of counter-tariffs that could be damaging for everyone and especially for us,”
Giorgetti added. Under Trump’s plans, Italy, which has a large trade surplus with the United States, will be subject to a general tariff of 20% along with other European Union countries.
Should Italy support EU counter-tariff plans?
A day earlier, former Italian Prime Minister Enrico Letta called U.S. President Donald Trump’s ‘Liberation Day’ trade tariffs “madness, pure madness”, labeling the reciprocal levies “incomprehensible.”
In an interview with CNBC’s Silvia Amaro on the shores of Lake Como at the Ambrosetti Forum, Letta said Trump was exploiting fragmentation within the European Union, saying the bloc needed to come together.
He further cautioned that the sweeping U.S. duties, which he termed a crazy frontal attack on the world, would be unfortunate for economies and individuals within the U.S., as well as the nations hit by the tariffs. He conceded that retaliatory measures could be needed to protect the European economy, but warned,
“If the reaction to Trump is to close Europe in a fortress, this reaction would be worse.”
How did Meloni downplay the impact of tariffs?
On the other hand, Italian Prime Minister Giorgia Meloni said that trade tariffs imposed by the United States were a mistake, but their effect should not be overestimated, and the reaction should be carefully considered.
“We must not fuel alarmism, it’s not a catastrophe,”
Meloni said in an interview on Italian state television station RAI.
“I’m not convinced that the best way to respond to tariffs is with other tariffs,”
She also said.
Meloni told her ministers that the consequences of the new tariffs are on a scale “we can meet,” according to sources.
She mentioned the head of the European Central Bank, Christine Lagarde, suggesting to the European Parliament early this week, before the US tariffs were disclosed, that Trump’s trade war with the EU would likely shave a slightly off the eurozone’s economy.
“Given that, the 20 percent tariffs should lead to a cut to European GDP of less than the estimated 0.3 percent. That would certainly have a significant impact, but of an order of magnitude we can meet,”
She was quoted as expressing. Meloni reportedly insisted that ministers not panic and emphasized it was
“important not to unduly amplify the actual impact of the US decision.”
