US Tariffs to Impact Italy’s GDP by 0.5% in 2026, Says Giorgetti

Rome: Economy Minister Giancarlo Giorgetti announced that the implementation of 15% US tariffs on EU goods is projected to result in a “maximum cumulative drop of 0.5 of a percentage point in 2026” for Italy’s GDP. Despite this anticipated decline, he mentioned that a “gradual recovery” is expected thereafter.

According to Ansa News Agency, Giorgetti addressed the issue during a question time session in the Lower House, where he emphasized that the government remains committed to its forecast of 0.6% economic growth for the current year. This forecast follows a contraction of 0.1% in GDP during the second quarter. Giorgetti also remarked that it is “premature” to discuss any measures to assist companies in mitigating the tariff effects.

Giorgetti noted that a “political agreement” has been established between the US and the EU, although it still requires finalization. He stated that while a trade war has been avoided, and a period of uncertainty has concluded, a comprehensive evaluation of the situation is not yet feasible. Addressing previous concerns about tariffs, Giorgetti explained that a 15% tariff is not significantly higher than the unsustainable threshold of 10% he had mentioned earlier, as it encompasses the existing 4.9% base tariff.