Tariffs Pose Significant Risk to Italy Amid EU-US Trade Tensions

Rome: Italy would be particularly vulnerable in a trade war between the United States and the European Union given its reliance on foreign exports and stagnating domestic market, Istat said on Thursday. Recent political and economic developments in relations between the EU and US “have considerable importance” for Italy “because, over the past 15 years, the growth of our production system has been mainly supported by external demand in the face of weak or stagnating domestic demand”, said the national statistics bureau.

According to Ansa News Agency, over the past years, Italy has increasingly directed its export flows towards non-EU markets, with a significant focus on the United States. Istat’s 2025 Report on the competitiveness of production sectors highlighted this shift, noting the potential repercussions of a trade war. A trade war would place the European Union in a more vulnerable position, emphasizing the potential economic risks for Italy if tariffs were imposed.