Too Soon to Gauge Impact of Tariffs, Consequences on GDP – PM

Rome: It is too early to assess the impact of Donald Trump’s tariffs on Italian business categories and the possible consequences for Italian GDP, Premier Giorgia Meloni told the leaders of those categories at Palazzo Chigi in Rome Tuesday.

According to Ansa News Agency, Meloni expressed gratitude to companies that refrain from fueling panic over the tariffs, emphasizing that alarmism is unhelpful. She stressed the importance of not amplifying the perceived impact of the American decision, recognizing that while Italian exports to the United States constitute approximately 10% of total exports, the introduction of tariffs could reduce this share without eliminating it.

Meloni explained the difficulty in precisely assessing the actual consequences on Italy’s GDP, urging consideration of these uncertainties. She expressed concern that panic and alarmism could cause more harm than the tariffs themselves, noting that companies not directly connected to U.S. exports have also been affected. Meloni emphasized the need for a collective effort to avoid panic, suggesting that instinctive reactions could have more severe impacts than the tariffs.

The prime minister highlighted that a 20% border duty does not necessarily equate to a 20% cost increase for American consumers, due to various intermediaries potentially absorbing the cost. She also pointed out that the strength of Italian exports often lies in product quality rather than price competitiveness.

Meloni further noted the potential indirect impact of a general American protectionist policy on Italy, using the example of German cars exported to the U.S., which are partly produced with Italian components. She urged consideration of both the direct and indirect effects of the tariffs, including the broader implications of trade duties.