Italy faces the potential loss of €20 billion in exports and 118,000 jobs next year if the US implements a 10% tariff on all European goods, according to the leader of Italy’s primary business association on Wednesday.
“Italy does not just export luxury products - with a demand that isn't very sensitive to prices - but mainly machinery, means of transport, and leather goods,” Confindustria President Emanuele Orsini said during an interview with daily Il Corriere della Sera.
Italian Prime Minister Giorgia Meloni recently minimised the potential effects of such tariffs on Italian businesses, suggesting they would not cause significant harm.
However, Orsini cautioned that a 10% tariff would be untenable for Italy’s economy, Reuters news agency reports.
He added that, when factoring in the 13.55% depreciation of the Dollar against the Euro since US President Donald Trump’s election, the tariffs would effectively amount to a 23.5% duty.
“A product that a year ago an Italian company was selling in the United States for 100 now costs our American customer 123. We fear very heavy setbacks,” he went on to say.
The deadline for countries to finalise trade agreements with Washington is set for 9th July.
The European Commission, which manages EU trade policy, acknowledges the US baseline tariff of 10% as inevitable but seeks immediate exemptions for key sectors within any agreement, according to diplomats.
Since April, the Euro has appreciated by about 9% against the Dollar, as investors, unsettled by Trump’s unpredictable economic policies, have grown more confident in the European Union’s emerging military and industrial ambitions.