Latest news with #Confindustria
The Star
a day ago
- Business
- The Star
Roundup: Italian industry warns U.S. tariffs could undermine trade, dent growth
ROME, July 21 (Xinhua) -- A proposed new round of tariffs by the United States could result in a 38-billion-euro (44.4 billion U.S. dollars) loss in Italian exports and reduce the country's gross domestic product (GDP) by 0.8 percent by 2027, Italy's largest industrial association said Monday. The findings were published in a report by the research unit of Confindustria, Italy's main business lobby, amid concerns over rising protectionism and its spillover effects on the global economy. U.S. President Donald Trump has threatened to triple a basic tariff on imports from the EU to 30 percent if Brussels does not cut a deal by the end of the month. "A 30-percent tariff would be unsustainable for Italy," the report stated, warning that such a move would not only significantly reduce trade volumes but also have wider macroeconomic consequences. Ciro Rapacciuolo, senior economist at Confindustria's CSC research center, said the tariff could slash Italian exports by 38 billion euros, equivalent to 58 percent of exports to the United States and around 6 percent of Italy's total exports. Under this scenario, Italy's GDP in 2027 would be 0.8 percent lower than projected under a business-as-usual trajectory, the report said. Beyond trade volumes, the tariff plan is also likely to affect exchange rates, inflation trends, and business confidence. According to CSC, the euro has already strengthened against the U.S. dollar in recent months, with the average exchange rate in July reaching 1.17 U.S. dollars per euro, up from a low of 1.04 in January, a 13.3 percent appreciation that could further challenge European exports to the U.S. market. The report also noted that the anticipated market volatility may push the European Central Bank to consider further interest rate cuts, potentially increasing inflationary pressures. Inflation across the eurozone has stabilized in recent months following the price surges seen during the height of the Russia-Ukraine conflict. Data from Italy's national statistics agency ISTAT showed consumer prices in Italy rose 1.7 percent year-on-year in June, compared to 2.0 percent in the broader euro area. Business sentiment remains fragile. Italy's industrial confidence index stood at 93.9 points in June, which was still below the neutral threshold of 100 and indicated subdued optimism among enterprises. The index is likely to decline further if new tariffs are imposed. Confindustria's warning adds to growing international calls urging Washington to reconsider its protectionist stance and return to multilateral approaches in trade policy.
Yahoo
a day ago
- Business
- Yahoo
US tariffs could cost Italy up to 0.8% of GDP, business lobby says
MILAN (Reuters) -U.S. tariffs of 30% on European Union goods could shave up to 0.8% off Italy's gross domestic product in 2027, the country's main business lobby said on Monday, as transatlantic trade negotiations continued. President Donald Trump has threatened 30% tariffs on EU imports starting August 1, but his trade chief Howard Lutnick said on Sunday there was "plenty of room" for an agreement with European counterparts. If 30% tariffs are confirmed, and assuming no countermeasures from the EU, Italy's GDP would take a 0.25% hit this year, rising to 0.59% in 2026 and 0.82% in 2027, Confindustria's research unit said. Italy's main exports to the U.S. include machinery, pharmaceuticals, cars and food products such as olive oil, pasta, cheese and wine. In a separate report, professional services group EY issued even bleaker forecasts, predicting 30% tariffs would shave 1.4% off Italy's GDP for 2025-2026, effectively cutting to zero expected growth for the period. Last month, national statistics agency Istat forecast GDP growth of 0.6% this year and 0.8% in 2026. Italy's business lobby last week said the only acceptable U.S tariff would be zero as EU exports are already penalised by a depreciating dollar. The U.S. currency has lost more than 12% against the euro since the start of the year. ($1 = 0.8593 euros) Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Reuters
a day ago
- Business
- Reuters
US tariffs could cost Italy up to 0.8% of GDP, business lobby says
MILAN, July 21 (Reuters) - U.S. tariffs of 30% on European Union goods could shave up to 0.8% off Italy's gross domestic product in 2027, the country's main business lobby said on Monday, as transatlantic trade negotiations continued. President Donald Trump has threatened 30% tariffs on EU imports starting August 1, but his trade chief Howard Lutnick said on Sunday there was "plenty of room" for an agreement with European counterparts. If 30% tariffs are confirmed, and assuming no countermeasures from the EU, Italy's GDP would take a 0.25% hit this year, rising to 0.59% in 2026 and 0.82% in 2027, Confindustria's research unit said. Italy's main exports to the U.S. include machinery, pharmaceuticals, cars and food products such as olive oil, pasta, cheese and wine. In a separate report, professional services group EY issued even bleaker forecasts, predicting 30% tariffs would shave 1.4% off Italy's GDP for 2025-2026, effectively cutting to zero expected growth for the period. Last month, national statistics agency Istat forecast GDP growth of 0.6% this year and 0.8% in 2026. Italy's business lobby last week said the only acceptable U.S tariff would be zero as EU exports are already penalised by a depreciating dollar. The U.S. currency has lost more than 12% against the euro since the start of the year. ($1 = 0.8593 euros)
Yahoo
6 days ago
- Business
- Yahoo
US tariffs and weak dollar threaten Italian exports, says industry chief
By Giulia Segreti ROME (Reuters) -The only acceptable tariff on European Union exports to the United States would be zero as the bloc is already facing a detrimental exchange rate, the head of Italy's business lobby said on Wednesday. "The real issue is that, to date, not only do we have to consider the burden of tariffs, but we must add to that the euro's appreciation against the dollar," said Confindustria President Emanuele Orsini. The euro has risen by more than 12% against the dollar since the start of the year. Orsini said the dollar's devaluation against the euro "is the biggest in the world" and that Confindustria's projections indicate that it would increase in the coming months, to reach up to 20%. "Any tariff level on top of that is out of control," since the cheaper dollar represents the "highest tariff that (Europe) already faces... making us lame from the start", Orsini said at a conference in Rome. U.S. President Donald Trump on Saturday threatened to impose a 30% tariff on imports from Mexico and the European Union starting on August 1, a level European officials say is unacceptable and would end normal trade between two of the world's largest markets. According to Confindustria, each percentage point of tariffs imposed by the U.S. would translate into a loss of Italian exports worth 874 million euros ($1 billion). The association did not specify over what amount of time. With 30% tariffs, Italy would lose 37.5 billion euros in exports, Orsini said, factoring in the exchange rate impact. Earlier this month he had already warned that tariffs of 10% would have been unsustainable for the Italian economy. Orsini added that Trump's final goal was to "relocate Europe's major companies to the United States" and called on the European Union to set out a plan to hold on to its businesses. ($1 = 0.8608 euros)
Yahoo
6 days ago
- Business
- Yahoo
US tariffs and weak dollar threaten Italian exports, says industry chief
By Giulia Segreti ROME (Reuters) -The only acceptable tariff on European Union exports to the United States would be zero as the bloc is already facing a detrimental exchange rate, the head of Italy's business lobby said on Wednesday. "The real issue is that, to date, not only do we have to consider the burden of tariffs, but we must add to that the euro's appreciation against the dollar," said Confindustria President Emanuele Orsini. The euro has risen by more than 12% against the dollar since the start of the year. Orsini said the dollar's devaluation against the euro "is the biggest in the world" and that Confindustria's projections indicate that it would increase in the coming months, to reach up to 20%. "Any tariff level on top of that is out of control," since the cheaper dollar represents the "highest tariff that (Europe) already faces... making us lame from the start", Orsini said at a conference in Rome. U.S. President Donald Trump on Saturday threatened to impose a 30% tariff on imports from Mexico and the European Union starting on August 1, a level European officials say is unacceptable and would end normal trade between two of the world's largest markets. According to Confindustria, each percentage point of tariffs imposed by the U.S. would translate into a loss of Italian exports worth 874 million euros ($1 billion). The association did not specify over what amount of time. With 30% tariffs, Italy would lose 37.5 billion euros in exports, Orsini said, factoring in the exchange rate impact. Earlier this month he had already warned that tariffs of 10% would have been unsustainable for the Italian economy. Orsini added that Trump's final goal was to "relocate Europe's major companies to the United States" and called on the European Union to set out a plan to hold on to its businesses. ($1 = 0.8608 euros)
