Italy Faces Risk of Losing €20 Billion in Exports and 118,000 Jobs Due to 10% US Tariffs

Italy risks losing €20 billion in exports and 118,000 jobs next year if the United States imposes a 10% tariff on all European goods, warned Emanuele Orsini, head of Italy’s main business lobbying group Confindustria, on Wednesday (July 2, 2025). Speaking to Italian newspaper Il Corriere della Sera, Orsini emphasized that Italy exports more than just luxury goods — which are less sensitive to price changes — pointing out that its core exports include machinery, transport equipment, and leather goods. This makes the country particularly vulnerable to trade disruptions. The warning comes despite recent downplaying by Italian Prime Minister Giorgia Meloni, who stated that such tariffs wouldn’t be especially harmful to Italian businesses. However, Orsini warned that 10% tariffs would be unsustainable for the Italian economy, effectively translating into a 23.5% burden when considering the depreciation of the dollar against the euro since U.S. President Donald Trump’s election, currently at 13.55%. ‘A product that an Italian company sold in the U.S. for $100 a year ago now costs our American customer $123,’ he added. ‘We fear very serious consequences.’ With the deadline for countries to finalize trade agreements with Washington set for July 9, the European Commission — which coordinates the EU’s trade policy — accepts the basic 10% U.S. tariff as inevitable but seeks immediate relief for key sectors as part of any deal, according to diplomats.