Italy warns against counter-tariffs on U.S., calls for budget leeway

5/4/2025 17:13

Italian Economy Minister Giancarlo Giorgetti warned on Saturday against the imposition of retaliatory tariffs on the United States in response to President Donald Trump's announcement of sweeping import duties on trade partners.



Speaking at a business forum near Milan, Giorgetti said Italy was aiming for a "de-escalation" with the U.S.



Under Trump's plans announced on Wednesday Italy, which has a large trade surplus with the United States, will be subject to a general tariff of 20% along with other European Union countries.



"We should avoid launching a policy of counter-tariffs that could be damaging for everyone and especially for us," Giorgetti said, adding "we must try to keep a cool head."



To offset the negative economic impact the tariffs were likely to have, Giorgetti said the European Union should allow member states to raise spending without breaching the bloc's fiscal rules.



High-debt Italy frequently calls on the EU to allow more budget leeway.