The head of Italy's largest business lobby has issued a stark warning against the United States' new tariff measures on the European Union, saying Europe is already under pressure from an unfavourable exchange rate.
Confindustria President Emanuele Orsini said the only reasonable tariff on EU exports to the US is zero, as the euro's strengthening against the dollar is already hurting European companies' competitiveness. "The real issue is that not only do we have tariffs, but we also have to bear the burden of a stronger euro against the dollar," he told a conference in Rome.
The euro has appreciated by more than 12% against the dollar since the start of the year, he said, and could reach 20% in the coming months.
Orsini's comments came after US President Donald Trump warned last weekend that 30% tariffs would be imposed on imports from Mexico and the EU from August 1.
The move was seen as unacceptable by EU officials and could end normal trade relations between the two global economic powers.
Confindustria estimates that every 1% tariff imposed by the US would cost Italy €874 million in lost exports. If a 30% tariff were to be imposed, Italy would suffer a loss of €37.5 billion in exports, excluding the impact of exchange rates.
Orsini had previously warned that a 10% tariff alone would be too much for the Italian economy. Now, with the threat of a triple tariff, the risks to Italy's export sector have become even greater.
The Confindustria president also accused the tariff measures of being aimed at forcing large European companies to move to the US.
He urged the EU to draw up a comprehensive action plan to protect European-owned companies and industries from being forced out by economic pressure.
With the US dollar weak and tariffs increasingly pressing, exports from EU countries, especially Italy, are in a particularly challenging situation.
Orsini stressed that if the EU does not act decisively, the US will regain control of global industries through subtle strategies disguised as trade policy.
