Italian Prime Minister Giorgia Meloni cautiously welcomed the newly struck EU-US trade agreement on Monday, declaring it had prevented “potentially devastating consequences” from a transatlantic tariff war, Euractiv reported.
Speaking at a summit in Ethiopia, Meloni – a political ally of US President Donald Trump – emphasised the existential stakes:
A trade escalation between Europe and the United States would have had unpredictable and potentially devastating consequences.
Her remarks followed Trump and European Commission President Ursula von der Leyen’s agreement to cap EU exports to the US at a 15% tariff rate, finalised during talks in Scotland earlier that day.
Meloni stressed she viewed the deal’s existence “positively” but noted Rome would scrutinise its details and seek exemptions “particularly on some agricultural products.” This calibrated response reflects Italy’s vulnerability as the EU’s second-largest manufacturing economy, where US tariffs threatened €23 billion in exports and over 100,000 jobs according to national industry federation Confindustria.
Meloni’s relief was immediately challenged by former Prime Minister Giuseppe Conte, leader of the opposition Five Star Movement (M5S), who lambasted the agreement as Italy’s historic military defeat. In a social media post, Conte declared:
In the end, the long game of tariffs has come to a conclusion. And as in every duel, there is a winner – the American president Trump – and a loser, or rather two: the European Union and Giorgia Meloni.
Conte specifically targeted Meloni’s earlier promises to secure a “zero-to-zero draw” through her rapport with Trump, arguing the outcome exposed her government’s “attitude of obsequious subservience”.
He highlighted collateral damages: Italy’s commitment to raise NATO defence spending to 5% of GDP, costing €445 billion over a decade, and its doubled imports of expensive US liquefied natural gas, which would further strain households through higher energy bills.
The deal’s ramifications extend beyond trade. Italy’s manufacturing-dependent regions now face structural pressures, with automotive and luxury goods exporters, including Ferrari and Armani, confronting eroded competitiveness. The 15% tariff falls between Trump’s initial 25% threat and the EU’s ideal of full exemption, leaving Italian industries with partial relief insufficient to offset production costs 37% higher than US rivals.
Concurrently, Meloni must reconcile NATO spending pledges with von der Leyen’s requirement for EU-wide fiscal discipline, a balancing act Conte characterised as “a grave and alarming moment” for citizens.
As Meloni studies the deal’s fine print, her government navigates an unenviable convergence: appeasing Trump’s transactional diplomacy, satisfying EU fiscal rules, and mitigating domestic economic pain, all while fending off accusations of “strategic capitulation.”
