Weak Dollar Acts as an ‘Implicit Tariff’ on Italy’s Exports, Says Giorgetti

Rome: Economy Minister Giancarlo Giorgetti stated Thursday that the weak dollar effectively acts as a tariff on Italy’s exports to the United States, urging a swift conclusion to trade negotiations between the EU and the US. Speaking at the annual assembly of the Italian Wine Union, Giorgetti emphasized how the depreciation of the dollar serves as an “implicit tariff” impacting the US’s trading partners.

According to Ansa News Agency, Giorgetti highlighted that while tariffs are often discussed, they are not the sole concern for those with a broad economic perspective. He pointed out three ways in which President Donald Trump’s US administration has disrupted the global order: tariffs, international taxation, and the financial dimension related to the dollar’s strength. Giorgetti acknowledged that the compromise on international taxation had been contentious but deemed it honorable.

Giorgetti warned of the potential costs associated with extended trade negotiations between Washington and Brussels, emphasizing that the most certain cost is uncertainty. He expressed concern about the prolonged duration of negotiations, suggesting that if they drag on, they could be damaging. To mitigate this risk, Giorgetti advocated for an immediate and honorable compromise to eliminate ongoing uncertainty and prevent further economic repercussions.