Italian Economic system Minister Giancarlo Giorgetti warned on Saturday towards the imposition of retaliatory tariffs on america in response to President Donald Trump’s announcement of sweeping import duties on commerce companions.
Talking at a enterprise discussion board close to Milan, Giorgetti mentioned Italy was aiming for a “de-escalation” with the US.
Beneath Trump’s plans introduced on Wednesday Italy, which has a big commerce surplus with america, might be topic to a basic tariff of 20% together with different European Union international locations.
“We should avoid launching a policy of counter-tariffs that could be damaging for everyone and especially for us,” Giorgetti mentioned, including “we must try to keep a cool head.”
To offset the destructive financial affect the tariffs have been prone to have, Giorgetti mentioned the European Union ought to enable member states to boost spending with out breaching the bloc’s fiscal guidelines.
Excessive-debt Italy ceaselessly calls on the EU to permit extra price range leeway.
Beneath EU governance, commitments agreed with the European Fee to chop public spending might be placed on maintain within the occasion of a “severe economic downturn” within the eurozone.
The Financial institution of Italy mentioned on Friday the euro zone’s third-largest economic system would develop by simply 0.5% this yr, lower than half the federal government’s 1.2% forecast made in September.
“In recent days there has been talk of aid for companies, but aid for companies is a state intervention that must be allowed under EU rules,” Giorgetti mentioned.
Italy has dedicated to bringing its deficit beneath the EU’s 3% of gross home product ceiling in 2026 from 3.4% in 2024, a job made tougher by its faltering financial development.
The federal government is anticipated to chop its development forecast for this yr and 2026 subsequent week, when it presents multi-year financial projections.
“The Italian public debt means reduced budget room for our country, a constraint that must be taken into account in any decisions we make,” Giorgetti mentioned.
Italy’s debt, proportionally the second highest within the euro zone, is at the moment seen rising to nearly 138% of GDP in 2026 from 135.3% final yr.
