Italy urges dialogue with U.S. as tariff hikes threaten blns in loss
ROME, July 14 (Xinhua) -- Italian Foreign Minister Antonio Tajani said Monday the European Union (EU) is prepared to impose billions of euros in retaliatory tariffs on U.S. goods should ongoing trade negotiations between the two sides fail to produce an agreement.
In an interview published Monday by Italian daily Il Messaggero, Tajani emphasized that while the EU has the tools to defend its economic interests, dialogue remains the preferred path forward. "Tariffs hurt every side, including the U.S.," he said. "If the stock market falls, that puts the pensions and savings of Americans at risk."
Tajani's remarks followed U.S. President Donald Trump's announcement on Saturday that Washington will impose a 30 percent tariff on imports from the EU and Mexico starting Aug. 1.
The move marks the latest escalation in a series of tariff policies introduced by the Trump administration, even as U.S. and European officials are still working on a trade agreement.
Italian Prime Minister Giorgia Meloni also voiced concern over the prospect of a transatlantic trade war, warning that such a development would harm both sides.
"Our government is in close contact with the European Commission and all parties involved in the tariff negotiations," Meloni said in a statement. "A trade war within the West would make us all weaker in the face of global challenges we are addressing together. Europe has the economic strength to protect its interests and reach a fair agreement."
An analysis by the Milan-based Institute for International Political Studies suggested that Italy would be among the EU countries most affected by the U.S. tariffs. Under a 30-percent duty scenario, Germany's gross domestic product (GDP) would contract by an estimated 0.5 percent compared to a no-tariff baseline, while Italy's GDP would shrink by approximately 0.36 percent.
On Monday, the Association for the Development of Industry in the Mezzogiorno (SVIMEZ) released its estimate of the impact of the U.S. tariffs on Italy's exports, projecting a reduction of nearly one-fifth in export volume and a loss of 12.4 billion euros in trade once the tariffs take effect.
SVIMEZ also warned of broader macroeconomic consequences, estimating a 0.5-percent reduction in Italy's GDP in 2026 and the potential loss of up to 150,000 jobs, including some 13,000 in the country's southern regions. "The repercussions would be nationwide," SVIMEZ President Luca Bianchi told Class CNBC.
Italy's main agricultural organization, Coldiretti, echoed the concerns, warning that the proposed tariffs could deal "a deadly blow" to the agri-food sector.
"Thirty-percent tariffs could inflict combined damages of up to 2.3 billion euros on Italian producers and U.S. consumers alike," Coldiretti said. Key agricultural exports such as cheese, wine, and processed foods would be hit hardest, the group noted.
According to Coldiretti's estimates, the new duties would raise overall tariffs on Italian cheese to 45 percent, wine to 35 percent, processed tomatoes to 42 percent, stuffed pasta to 36 percent, and jams and marmalades to 42 percent. (1 euro = 1.17 U.S. dollar)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Vancouver Sun
21 minutes ago
- Vancouver Sun
Sentencing hearing begins for Freedom Convoy leaders Lich, Barber
The sentencing hearing for Freedom Convoy leaders Tamara Lich and Chris Barber has started in Ottawa, months after the two were found guilty of mischief. Barber is appearing virtually due to the sudden death of one of his parents, while Lich is attending in person. Dozens of people have filled the courtroom to watch the proceedings. Two days have been set aside for the parties to present their sentencing submissions. The Crown is seeking a prison sentence of seven years for Lich and eight years for Barber, who also was convicted of counselling others to disobey a court order. Start your day with a roundup of B.C.-focused news and opinion. By signing up you consent to receive the above newsletter from Postmedia Network Inc. A welcome email is on its way. If you don't see it, please check your junk folder. The next issue of Sunrise will soon be in your inbox. Please try again Interested in more newsletters? Browse here. Lich and Barber were key figures behind the convoy protest that occupied downtown Ottawa for three weeks beginning in late January 2022 to protest vaccine mandates and other pandemic measures. The protest ended after the federal government invoked the Emergencies Act for the first time ever. The convoy was cleared out of Ottawa's downtown core in a three-day police operation that began on Feb. 18. Ontario Court Justice Heather Perkins-McVey said she found Lich and Barber guilty of mischief because they routinely encouraged people to join or remain at the protest, despite knowing the adverse effects it was having on downtown residents and businesses. Barber also was found guilty of counselling others to disobey a court order for telling people to ignore a judge's injunction directing convoy participants to stop honking their truck horns. Lich was not charged with that offence. In a separate Ottawa-based trial for Pat King, another convoy leader, the Crown sought a sentence of 10 years in prison for mischief and disobeying a court order. King was sentenced in February to three months of house arrest, 100 hours of community service at a food bank or men's shelter and a year of probation. He received nine months credit for time served before his conviction. Conservative Leader Pierre Poilievre criticized the Crown's sentencing proposals for Lich and Barber. In a social media post Monday, Poilievre compared the sentencing range to sentences for other crimes and asked, 'How is this justice?' While it's quite rare for elected officials to comment directly on a sentencing hearing, Poilievre's message was echoed by several other prominent Conservatives. Deputy Conservative leader Melissa Lantsman called the Crown's proposed sentence 'political vengeance not actual justice.' Some Conservatives, including Poilievre, were openly supportive of the Freedom Convoy as trucks and other vehicles clogged roads around Parliament Hill. Both Lich and Barber thanked Poilievre for his support in separate social media posts. 'There is a fine line between politics and the judiciary, as there should be, and I have long understood the uncomfortable position elected officials find themselves in when it comes to commenting on cases that are before the court,' Lich said on X Tuesday. 'In our case, the double standard and the vindictive nature from the prosecution office has become too obvious to ignore and will set a precedent going forward that will affect all Canadians who choose to peacefully protest or deter them from exercising their Charter Right to peacefully assemble.' 'Thank you, Pierre, we've been waiting so long for elected officials to speak up,' Barber wrote in his own post. Poilievre lost his Ottawa-area seat in the April election and is running in an Alberta byelection. Both Lich and Barber were found not guilty on charges of intimidation, counselling to commit intimidation, obstructing police and counselling others to obstruct police. Justice Perkins-McVey said intimidation carries a sense of menace or violence. She said that both Lich and Barber repeatedly called for protesters to remain peaceful throughout the protest. As for obstructing police, Perkins-McVey said both were arrested without incident and were in custody before the main police operation began to clear downtown Ottawa. Charges for counselling others to commit mischief were stayed at the request of the Crown. Our website is the place for the latest breaking news, exclusive scoops, longreads and provocative commentary. Please bookmark and sign up for our daily newsletter, Posted, here .
Edmonton Journal
21 minutes ago
- Edmonton Journal
Sentencing hearing begins for Freedom Convoy leaders Lich, Barber
Article content Barber is appearing virtually due to the sudden death of one of his parents, while Lich is attending in person. Article content Article content Dozens of people have filled the courtroom to watch the proceedings. Article content Two days have been set aside for the parties to present their sentencing submissions. Article content Article content The Crown is seeking a prison sentence of seven years for Lich and eight years for Barber, who also was convicted of counselling others to disobey a court order. Article content Article content Lich and Barber were key figures behind the convoy protest that occupied downtown Ottawa for three weeks beginning in late January 2022 to protest vaccine mandates and other pandemic measures. Article content The protest ended after the federal government invoked the Emergencies Act for the first time ever. The convoy was cleared out of Ottawa's downtown core in a three-day police operation that began on Feb. 18. Ontario Court Justice Heather Perkins-McVey said she found Lich and Barber guilty of mischief because they routinely encouraged people to join or remain at the protest, despite knowing the adverse effects it was having on downtown residents and businesses. Article content Barber also was found guilty of counselling others to disobey a court order for telling people to ignore a judge's injunction directing convoy participants to stop honking their truck horns. Lich was not charged with that offence. Article content Article content In a separate Ottawa-based trial for Pat King, another convoy leader, the Crown sought a sentence of 10 years in prison for mischief and disobeying a court order. Article content King was sentenced in February to three months of house arrest, 100 hours of community service at a food bank or men's shelter and a year of probation. Article content He received nine months credit for time served before his conviction. Article content Conservative Leader Pierre Poilievre criticized the Crown's sentencing proposals for Lich and Barber. In a social media post Monday, Poilievre compared the sentencing range to sentences for other crimes and asked, 'How is this justice?' Article content While it's quite rare for elected officials to comment directly on a sentencing hearing, Poilievre's message was echoed by several other prominent Conservatives. Article content Deputy Conservative leader Melissa Lantsman called the Crown's proposed sentence 'political vengeance not actual justice.'
CTV News
21 minutes ago
- CTV News
Five years after COVID, pharma shares languish in U.S. policy limbo
A vial of the Phase 3 Novavax coronavirus vaccine is prepared for a trial at St. George's University hospital in London on Oct. 7, 2020. (Alastair Grant / AP Photo) MILAN — Global healthcare stocks have not been this cheap in decades and fund inflows into the sector are picking up, yet the shares remain in the doldrums, highlighting uncertainty over drug pricing policies since Donald Trump returned to the White House. Pharma companies' earnings outlook is being obscured by concerns over revived 'most-favored-nation' drug pricing rules in the lucrative U.S. market and potential 200 per cent tariffs on pharma imports into the U.S. Money flooded into drugmakers' shares during the COVID-19 pandemic but more recently there has been an exodus as investors shifted into Big Tech, leaving the sector cheap but unloved. At 15.9 times forward earnings, healthcare trades 11 per cent below its long-term average and 20 per cent below global equities, its steepest discount in 16 years, just above a record discount in 2009, based on LSEG Datastream data. 'We've moved from cautious optimism to cautious pessimism,' said Stephanie Aliaga, global market strategist at J.P. Morgan Asset Management in New York. 'Valuations have gotten even cheaper, but for a reason,' she added, referring to intensifying U.S. policy risks. But some investors are starting to look past the Washington policy fog and at long-term positive drivers, such as aging populations, RNA-based therapeutics, and breakthroughs in weight-loss and diabetes drugs. 'Armageddon scenario' Alberto Conca, CIO at Swiss wealth manager LFG+ZEST, has been adding exposure to pharma, biotech and medtech in recent weeks, drawn by strong cash-flow yields and the prospect of U.S. rate cuts boosting this rate-sensitive sector. Interest rate cuts typically support healthcare by lowering R&D funding costs and boosting the value of future cash flows. 'These are quality companies with good growth and defensive features being priced as if we're heading into an 'Armageddon scenario', which I believe is unlikely,' he said. UK-based M&G Investments has also been selectively adding to healthcare, according to its latest allocation report. Healthcare funds have seen net inflows since 2024, more than reversing the outflows from late 2022 through 2023, fund tracker EPFR data shows. Although year-to-date, inflows total US$7.2 billion, down 41 per cent from last year. Innovation is accelerating, pipelines are maturing and M&A is showing signs of picking up - yet stock prices are unmoved. Whether that represents a buying opportunity or a value trap hinges on how and when the policy uncertainty clears, investors said. Catalyst needed Historically, healthcare has traded at a modest premium to world stocks, thanks to its defensive profile and steady earnings. But that narrative has unraveled under political pressure from Washington and investors' love of Big Tech. Over the past three years, U.S. healthcare has underperformed the S&P 500 by more than 60 percentage points, making it the worst sectoral performer on Wall Street. Its valuation has deepened to a near-record 27 per cent discount, from parity to the S&P in 2023. 'Markets don't like uncertainty, and that shows up in valuations,' said Eddie Yoon, healthcare sector leader and portfolio manager at Fidelity Investments in Boston. 'Being cheap isn't necessarily a reason to buy. You need a catalyst.' For now, that catalyst is elusive. The policy uncertainty makes it difficult to forecast future earnings, he said, though he hopes for more clarity by year-end - potentially also paving the way for more M&A in the industry. Talks with the Trump administration have yet to clarify how and when drug prices will fall, executives from Eli Lilly and Merck said at a May industry conference. Yoon, who has typically been underweight Big Pharma due to patent expiry risks, notes smaller, innovative firms are becoming profitable. 'We're seeing companies go from unprofitable to very profitable,' he said, citing Alnylam and Penumbra as examples he owns. 'Historically, that's been a very good time to own healthcare stocks.' LFG+ZEST's Conca, who favors U.S. names like Abbott, Edwards Lifesciences, and AbbVie, along with Sanofi and Recordati in Europe, said interest rate cuts could be a major catalyst. Out of the woods? In Europe, healthcare is even cheaper than U.S. pharma, trading at 14.3 times forward earnings. A 55 per cent drop in shares of Novo Nordisk in the last year, related in part to concerns over competition in obesity drugs, along with tariff-driven production shifts to the U.S., has weighed on valuations. 'The sector will adapt,' wrote Arnaud Cadart, healthcare analyst at France's CIC Market Solutions. But that will come 'at the cost of rebalancing its revenues and probably transforming its organizations.' AstraZeneca, for example, has unveiled a US$50 billion U.S. investment. For now, the sector remains in limbo: cheap, but lacking enough visibility to trigger a broad re-rating. 'Healthcare has endured a lot of pain,' said J.P. Morgan's Aliaga. 'We're not sure if that pain is done, but the worst is likely over, given how extreme the exodus has been.' --- Reporting by Danilo Masoni; Editing by Amanda Cooper and Jane Merriman
