Italian firms in Lombardy strategize against US tariffs
MILAN (Reuters) -More than half of the companies from Italy's industrial heartland which export to the U.S. are studying countermeasures to tariffs, including establishing a bigger presence across the Atlantic, the Bank of Italy said on Thursday.
Presenting a report on the northern region comprising Milan, the central bank said the U.S. accounted for 8.6% of exports out of Lombardy, with beverages, fashion, furniture and pharmaceutics more exposed to tariff risks.
That was slightly below the national average, as Italian exports to the United States account for 10.5% of the total.
The Bank of Italy said 54% of Lombardy-based companies which sell goods in the United States were adapting their strategies to President Donald Trump's announced tariff hikes.
Around 18% of the firms planning countermeasures said they would look for new markets while some 14% are looking to increase their local presence, the central bank found.
The remaining 46% of companies surveyed said they were not planning action as their share of U.S. exports was small or because they deemed alternative moves to be too costly.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
22 minutes ago
- Yahoo
Stocks sell off, oil surges as Israel strikes Iran
SINGAPORE/LONDON (Reuters) -Israel launched large-scale strikes against Iran on Friday, saying it had attacked nuclear facilities and missile factories and killed a swathe of military commanders in what could be a prolonged operation to prevent Tehran building an atomic weapon. U.S. President Donald Trump suggested that Iran had brought the attack on itself by resisting U.S. demands in talks to restrict its nuclear programme, and urged it to make a deal, "with the next already planned attacks being even more brutal". Washington said it had no part in the operation, however. MARKET REACTION: U.S. stock futures fell 1.5%, oil prices jumped and gold rallied. The U.S. dollar rallied. QUOTES: JAMES ROSSITER, HEAD OF GLOBAL MACRO STRATEGY, TD SECURITIES, LONDON: "This is a flight-to-safety event. But markets are struggling a bit and in the fixed income space you have an oil-price shock that is inflationary and so you should see markets expecting an even more hawkish Fed. On the other hand, you have the flight-to-safety, which should push bond yields lower." "On the dollar side, it seems like a cleaner move." "The U.S. was very quick to come and say 'this (the Israeli strike) has nothing to do with us' and then we have Trump's comments. He's still clearly pushing for the Iranian to talk. There are these talks that have been scheduled for Sunday." MATT SIMPSON, SENIOR MARKET ANALYST, CITY INDEX, BRISBANE: "Israel's 'pre-emptive' strike on Iran has sent volatility surging during Asian trade on Friday. Traders are now on edge over the prospects of a full-blown Middle East conflict, given Iran had already warned it would target Israel's nuclear facilities if attacked first. "It's now a question of when Iran will respond, not if. And that will keep uncertainty high and volatility elevated. ""Crude oil has since broken above its June 2022 bearish trendline, with a move to the highs around $78 or even the $80 now within easy reach. The question now is whether this is a typical geopolitical knee-jerk reaction from markets, which results in lots of hype with no delivery. Or if the US really is on the brink of navigating a Middle East war." CHRISTOPHER WONG, CURRENCY STRATEGIST, OCBC, SINGAPORE: "USD rebounded this morning, alongside other safe-haven proxies, including CHF, JPY and gold on geopolitical escalation. Not surprisingly, risk proxies including AUD, KRW traded on the backfoot. Geopolitical noises may temporarily distort USD downtrend and temporarily weigh on risk proxies especially heading into the weekend." JESSICA AMIR, MARKET STRATEGIST, ONLINE TRADING PLATFORM MOOMOO, SYDNEY: 'We've seen equities stalling for some time, and it just appears that this is the catalyst that will probably send equities down lower. Stocks are up 30% globally, and you've got the MSCI World Index at a record, so there's room for fat to be taken off the table. 'What's going to continue to soar higher is, obviously, the defensive sectors, so utilities, energy, and also defence (companies) themselves. 'The (Middle East) region is a huge supplier of oil and obviously there's now the thinking that some of that supply could be cut off at a time when we've got demand really starting to pick up.' HIROFUMI SUZUKI, CHIEF FX STRATEGIST, SMBC, TOKYO: "The situation in the Middle East has further deteriorated, and the heightened geopolitical risks are being strongly felt in the FX market. With the rise in risk-off sentiment, the Japanese yen is likely to be bought. The USD/JPY exchange rate is seeing the 140 yen level, observed in April, as a potential support level." TONY SYCAMORE, ANALYST, IG, SYDNEY: "I thought Israel might give Iran the benefit of the doubt ahead of weekend talks with the U.S., but they've obviously decided to go it alone. "While details are sparse regarding the targets, risk asset markets are not in the mood to wait and find out. "This morning's alarming escalation is a blow to risk sentiment and comes at a crucial time after macro and systematic funds have rebuilt long positions and investor sentiment has rebounded to bullish levels. While we await further news and a potential response from Iran, we are likely to see a further deterioration in risk sentiment as traders cut risk seeking positions ahead of the weekend." KARL SCHAMOTTA, CHIEF MARKET STRATEGIST, CORPAY, TORONTO: "Traders are scurrying for safety as reports of a strike on Iran cross the wires, but details on the scale and magnitude of the attack remain scarce and moves have been relatively limited thus far." CHARU CHANANA, CHIEF INVESTMENT STRATEGIST, SAXO, SINGAPORE: "The geopolitical escalation adds another layer of uncertainty to already fragile sentiment. "The key question now is whether this marks a brief flare-up or the beginning of broader regional escalation. If the situation de-escalates quickly, markets may retrace some of the initial moves. But if tensions rise — particularly with any threat to oil supply routes — the risk-off mood could persist, keeping upward pressure on crude and haven assets." Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
28 minutes ago
- Yahoo
Global equity funds draw inflows on cooler CPI report, U.S.-China deal
(Reuters) -Global equity funds attracted net inflows for the first time in four weeks in the week through June 11, driven by a benign U.S. inflation report and developments on a U.S.-China trade deal, though simmering Middle East tension tempered investor interest. Investors acquired a net $3.19 billion worth of global equity funds during the week, snapping a three-week-long string of selling, data from LSEG Lipper showed. European equity funds attracted a net $3.66 billion worth of investments, the largest for a week in three. U.S. equity fund outflows eased to a four-week low of $212 million while investors withdrew about $605 million from Asian funds. The MSCI World index, however, slipped from record highs on Friday as conflict escalated in the Middle East after Israel launched a military strike on Iran. Equity sectoral funds were popular for a third consecutive week as investors added a net $586 million to these funds. The industrial sector drew $1.1 billion, communication services attracted $513 million while healthcare sector funds lost a net $676 million in outflows. Global bond funds witnessed net purchases for an eighth successive week, totaling $20.15 billion on a net basis. Euro-denominated bond funds saw robust inflows of $7.83 billion, the largest weekly figure since October 2020. Global short-term and high-yield bond funds also attracted $3.79 billion and $2.13 billion, respectively. Money market funds saw a net $4.39 billion worth of sales, following a hefty $109.45 billion worth of inflows the week before. Gold and precious metals commodity funds stayed in demand for the third week in a row, with a net $1.04 billion worth of purchases during the week. Emerging market bond funds gained about $1.87 billion in a seventh successive weekly inflow, while equity funds saw net buying of $889 million, data for a combined 29,674 funds showed. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
29 minutes ago
- Yahoo
3 Ways Trump's Tariffs Affect Prices Even After Rollbacks
President Donald Trump recently reduced tariffs on 'de minimis' packages, shipments worth less than $800 from China, from 120% to 54%, giving American shoppers a little relief. Despite these rollbacks, consumers shouldn't expect immediate relief at the checkout counter. Read More: Find Out: According to experts, here are the different ways Trump's tariffs will affect product prices even after rollbacks. One of the reasons prices may remain high even after rollbacks lies in retailers' existing inventory. The products sitting on store shelves were likely imported under older, higher rates. That means retailers are still passing this cost to consumers. 'Trump rolling back tariffs at this time doesn't guarantee that things would no longer be expensive for millions of Americans,' said Aaron Razon, personal finance expert at Couponsnake. 'Retailers would continue to pass on the tariff cost from their previous inventory down to consumers in order to stay profitable, and this will keep prices up for consumers.' Retail companies, including Walmart, Best Buy, Adidas, and Stanley Black & Decker, among others, have issued warnings of raising prices due to Trump tariffs, according to a CNN report. The impact on pricing adjustments extends beyond retailers' existing inventory until negotiations with China reach a conclusive agreement. Try This: Not all products will face the same tariff pressure. The complexity of manufacturing and global supply chains means certain products face persistent price pressures even after tariff reductions. 'The more complex a product is and the more it depends on components from different countries, the more it is subject to price increases due to tariffs,' said Julia Khandoshko, CEO of Mind Money. 'For example, microelectronics, which is assembled from many parts imported from all over the world, will be at the greatest risk of rising prices.' This complexity will likely be an ongoing challenge for manufacturers who rely on multiple imported parts from different countries, which could lead to delays in deliveries and higher costs for consumers. The 120% to 54% tariff drop might seem like a huge relief for shoppers, but in reality, it's still extremely high for millions of Americans. For this reason, consumers may not notice much relief at the checkout line. 'The truth is that a 54% tariff is still a significant burden,' added Razon. 'This exposes them to the danger of a false sense of security that the rollback on tariffs is a significant relief when, in reality, it's not. Consumers would continue to feel the strain of higher prices.' More From GOBankingRates 3 Luxury SUVs That Will Have Massive Price Drops in Summer 2025 6 Big Shakeups Coming to Social Security in 2025 10 Cars That Outlast the Average Vehicle This article originally appeared on 3 Ways Trump's Tariffs Affect Prices Even After Rollbacks
