MNI: Italy Speaks To US Over Limiting Tariff Impact -Officials
MNI (LONDON) - The Italian government is exploring bilateral options with Washington to mitigate the impact of U.S. tariffs within the limited scope allowed by legislation, a government source and the head of the country’s official trade agency told MNI.
"I think there are already some situations where there is bilaterality between countries, you have to understand however that what will happen will depend on the negotiations," said Matteo Zoppas, president of the Italian Trade Agency, just before the U.S. administration announced tariffs of up to 25% on EU imports.
"The hope, however, is through the diplomatic efforts of Minister Antonio Tajani and also the good relations that there are between our Prime Minister Giorgia Meloni and Trump's new administration that we will be able to minimise the impact of the tariffs," he added.
Asked which Italian goods or categories might be exempt from general EU tariffs, Zoppas was unsure but noted that discussions were evolving across Europe.
"I don’t know, I would say the wrong thing, but some countries on some categories seem to have updates," he said.
Rome is leveraging Meloni’s good relations with U.S. President Donald Trump to position itself as a bridge between Washington and Europe, a government source said. This could allow Meloni to gain Trump’s ear and influence aspects of U.S. trade policy towards the EU, the source said. (See MNI: EU Seeks To Avoid Stigma From Fiscal Opt Outs For Defence)
"We remain part of the bloc. We don’t want it to seem that we are going on a campaign all for ourselves," the source said, noting that discussions so far had been discreet.
An EU trade official also confirmed that it was possible that the Italians had initiated their own talks with the U.S. on trade, an area which is supposed to be the prerogative of the European Commission. But, he added, “The rest of the member states and the Commission would not be happy.”
IMPACT ON ITALY
Italy's trade surplus with the U.S., which was around USD44 billion in 2023, is driven by exports in agribusiness, fashion, furniture, and consumer goods, Zoppas said. "These are important channels that we have, not only in terms of turnover but especially in terms of strategic value."
The economic impact of U.S. tariffs remains difficult to assess, given uncertainty over their scope and potential knock-on effects on other markets, such as China, he said.
"Whoever is guessing at numbers does so without knowing exactly what is going to happen, because in any case, with regards to tariffs, we do not know how much they will be, in which category they will be placed, in what way, whether they will be European, whether they will be bilateral, how they will relate to the duties that are being imposed on other economies that are naturally interdependent," he explained.
Key risks for Italian exports in 2025 include the Germany-Italy automotive trade, the outcome of the war in Ukraine, tariff policies affecting Europe and Italy, and the unpredictable trajectory of Asian markets, Zoppas said.
Germany accounts for around EUR 80 billion of Italian exports, but trade flows fell by about 5% in 2024, weighing on Italy’s export-driven economy, which represents a third of its GDP.
"We're very concerned, it's very much related to the automotive issue, we hope that the automotive sector somehow can recover," he said, adding that even if Germany reverses the trend, "it doesn’t look like something that will be completely fixed in the short term."
An end to international conflicts in Ukraine and the Middle East could provide a boost to Italian exports, particularly as Italy is expected to play a role in post-war reconstruction. Meanwhile, tensions in the Suez Canal continue to weigh on trade flows, Zoppas said.
(Additional reporting by David Thomas in Brussels)