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PM Meloni says Italy 'can manage' new US tariffs

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AFP/The Local - news@thelocal.it
PM Meloni says Italy 'can manage' new US tariffs
Italy's Prime Minister Giorgia Meloni pictured at Palazzo Chigi in Rome on February 10th, 2025. Photo by Filippo MONTEFORTE / AFP

Italian Prime Minister Giorgia Meloni told her cabinet on Friday that the new US tariffs on EU imports will "certainly have a significant impact" on Italy's economy, but the country "can manage" them.

Meloni – an ally of President Donald Trump – told her ministers that the new tariffs' impact was of a magnitude "we can manage", according to a government source.

She cited the head of the European Central Bank, Christine Lagarde, who told the European Parliament earlier this week that Trump's trade war with the EU would likely shave little off the eurozone's economy.

Lagarde estimated that a hypothetical 25-percent tariff rate would cut the eurozone's GDP by 0.3 percent in the first year.

In the end, Trump announced a 20-percent rate on imports from European Union countries.

"The 20-percent tariffs should cut European GDP by less than the estimated 0.3 percent. That would certainly have a significant impact [on Italy], but of an order of magnitude we can manage," Meloni was quoted as saying.

She reportedly urged ministers not to panic and stressed that it was "important not to unduly amplify the actual impact of the US decision".

The European Commission, which is responsible for trade issues related to all 27 EU member countries, said it hoped for negotiations with Washington to reduce "unjustified" US tariffs – but added that it was prepared to launch retaliatory measures if needed.

During her hearing before the European Parliament on Monday, Lagarde said that, if the trade war were to further escalate, the eurozone's economy could be slashed by around 0.5 percent.

Meloni was reported as saying that the new tariffs will reduce Italy's overall export figures, "but it was too early to quantify the effect".

The US market represents 10 percent of Italy's exports, according to government data.

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Meloni on Friday asked a select group of ministers to study the consequences of the US move.

The group is set to meet with the representatives of Italian industries impacted by the new duties on Tuesday.

Italy's central bank on Friday lowered its growth estimate for the country in 2025 to 0.5 percent – down from 0.7 percent – as a result of the new US tariffs.

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