Giancarlo Giorgetti Urges De-escalation Amid U.S. Tariff Threats

Italian Economy Minister Giancarlo Giorgetti cautioned against retaliatory tariffs on the U.S. following President Trump's new import duties. At a Milan business forum, Giorgetti advocated for 'de-escalation' to avoid economic harm and urged the EU to permit increased spending amid Italy's surging debt.

Italian Economy Minister Giancarlo Giorgetti issued a stark warning on Saturday regarding the potential imposition of retaliatory tariffs on the United States. This response follows President Donald Trump's sweeping announcement on import duties targeting trade partners. Giorgetti, speaking at a business forum near Milan, emphasized Italy's strategic goal of achieving a 'de-escalation' with the U.S.

In line with Trump's newly unveiled plans, Italy, which maintains a significant trade surplus with the U.S., faces a general tariff of 20%, akin to other European Union countries. Giorgetti stressed the need to avoid counter-tariffs due to their potentially harmful impact and advocated for maintaining a level-headed approach.

To mitigate the economic repercussions anticipated from the tariffs, Giorgetti proposed that the European Union should allow increased public spending without violating fiscal regulations. With Italy regularly seeking greater budget flexibility due to its high debt, Giorgetti's remarks highlight the ongoing challenges facing the nation's economy.

(With inputs from agencies.)