Italy warns of new trade war amid growing tensions with US

Italian Minister of Economic Development Adolfo Urso has stated that US President Donald Trump cannot make separate trade agreements with individual EU member states, as it would undermine the bloc’s unity on trade issues.

Urso expressed Italy’s concerns about tariffs, given its substantial trade surplus with the US, but noted that the steel and aluminum tariffs announced on February 10 are unlikely to significantly affect Italian exports, Caliber.Az reports via foreign media.

He also pointed out that it would be "impossible" for Trump to bypass EU institutions and offer bilateral trade deals to leaders with whom he has closer ties, such as Italy's Prime Minister Giorgia Meloni.

In terms of trade policy, individual EU states "cannot in any way conclude bilateral agreements, raise or lower duties or even prepare anti-dumping measures," he added.

EU trade ministers are set to hold an online meeting on February 12 to discuss a potential response to the tariffs introduced by the Trump administration.

"We are particularly worried that a new trade war could start. Meloni is committed to EU unity but was also focused on using the excellent relationship [she has] with the Trump administration to avoid an escalation that is in nobody's interest," Urso said.

On February 10, the Trump administration revealed its decision to reinstate a 25 per cent tariff on steel imports, mirroring the original move from 2018 during his first term.

This new tariff will eliminate previous exemptions and tariff-rate quotas for the EU and UK, set to take effect on March 12.

The US defended the tariff hike by pointing to an increase in steel imports from the EU and UK, with their share of the US market rising to 20.7 per cent in 2024 from 18.6 per cent in 2020.

US officials also expressed concerns that trade agreements signed between 2021 and 2022 have not adequately addressed global overcapacity, particularly from China, allowing unfairly priced steel to enter the US market through the EU and UK.

These agreements were meant to replace the original 25 per cent tariffs imposed under the US Section 232 trade rules, transitioning to a tariff-rate quota system.

European Commission President Ursula von der Leyen strongly condemned the move, signaling that the EU would respond with “firm and proportionate counter-measures.”

By Naila Huseynova