US tariffs puts Italy under stress

(MENAFN) Italy is facing mounting pressure on its export-driven economy as trade tensions with the United States escalate and currency fluctuations add to the strain.

With no resolution in sight for the ongoing trade dispute between the U.S. and the European Union, President Donald Trump has announced a new 30% tariff on imports from the EU and Mexico, set to take effect on August 1. The move adds to the existing duties on EU steel, aluminum, cars, and auto parts and poses a significant challenge for Italian exporters.

According to Italy’s National Institute of Statistics (ISTAT), the United States is Italy’s third-largest export destination, accounting for 10% of the country’s total exports. In 2024, Italy reported a €39 billion trade surplus with the U.S., with sales to the American market making up over 22% of Italian exports to non-EU countries — well above the EU average.

The top Italian exports to the U.S. include wine and other beverages, automobiles, and transport equipment, according to Confindustria, the national industrial association. But even beyond tariffs, Italy is also being hit by currency headwinds: the weakening of the U.S. dollar makes Italian goods more expensive for American buyers, acting as a de facto tax on exports.

As a result, Italian businesses face a dual threat — direct tariffs and currency pressures — both of which could significantly reduce their competitiveness in one of their most important foreign markets.

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