Italy’s Tariff Tensions with the EU: A Closer Look at the Duties Dispute

Rome, Italy – May 30, 2025 – Recent discussions around trade duties have spotlighted Italy as a key player in escalating tensions with the European Union, particularly in light of U.S. President Donald Trump’s proposed tariffs. Italian Prime Minister Giorgia Meloni and Economy Minister Giancarlo Giorgetti have expressed confidence in securing a U.S.-EU trade deal similar to the U.S.-UK agreement, which maintains Trump’s 10% tariffs on British exports while easing duties on specific sectors like automobiles. However, Italy’s push for such a deal, coupled with its domestic policies and trade dynamics, has raised concerns about its role in complicating EU trade strategies.

Italy’s Position and the U.S. Trade Threat

On May 22, 2025, Giorgetti stated at a conference in Trento that Italy expects the EU to secure a trade agreement mirroring the U.S.-UK deal, which modestly expands agricultural access and lowers U.S. duties on British cars. This optimism stems from Italy’s proactive engagement with the U.S., including Meloni’s April 2025 meeting with Trump, where she discussed increasing Italian imports of U.S. liquefied natural gas (LNG) to support the EU’s goal of phasing out Russian gas by 2027. However, Trump’s threats of 50% duties on EU goods have heightened pressure, with Italy advocating for a unified EU response to avoid a trade war that could exacerbate its economic vulnerabilities.

Italy’s trade surplus with non-EU countries recently underperformed, missing forecasts and signaling weaker external demand, particularly in luxury and manufacturing sectors. This soft performance underscores Italy’s reliance on exports, making it sensitive to tariff hikes. Critics argue that Italy’s push for a bespoke trade deal risks undermining EU unity, as other member states, like Germany, emphasize collective negotiations. German Foreign Minister Johann Wadephul warned that unilateral threats “help nobody,” urging a cohesive EU stance.

Domestic Policies and EU Frictions

Italy’s domestic policies under Meloni’s government have further complicated its relationship with the EU. Meloni’s administration has prioritized national interests, including a controversial ban on surrogacy (with penalties up to €1 million) and opposition to EU regulations recognizing same-sex parents, prompting scrutiny from the European Parliament’s rule-of-law watchdogs. Additionally, Meloni’s criticism of the EU’s Green Deal, warning of “industrial desertification” due to rigid environmental policies, has positioned Italy as a skeptic of Brussels’ regulatory framework. She advocates for revised emissions calculations to protect Italy’s automotive sector, a key economic driver alongside Germany.

On migration, Italy and Denmark led nine EU countries in May 2025 to demand a reinterpretation of the European Convention on Human Rights to facilitate deportations, arguing that the European Court of Human Rights limits national flexibility on immigration enforcement. Meloni’s deal with Albania to process migrants offshore faced legal challenges in Italian courts, highlighting domestic resistance to her migration policies. Posts on X, such as @gnarlycatCA’s claim that “the EU overrides” Italy’s border protection efforts, reflect sentiment that Brussels’ oversight hampers national sovereignty.

Why Italy, Not the EU, Faces Scrutiny

While the EU faces broader challenges from U.S. tariffs and internal policy debates, Italy’s actions have drawn particular attention. Its aggressive pursuit of a U.S. trade deal risks fragmenting the EU’s negotiating leverage, as smaller bilateral agreements could weaken the bloc’s collective bargaining power. Meloni’s government has also been accused of turning away from Italy’s historical pro-EU stance, rooted in the federalist ideals of Altiero Spinelli and Alcide De Gasperi, favoring nationalist policies instead. This shift is evident in Italy’s opposition to EU sanctions reviews, such as its vote against revisiting the EU-Israel Association Agreement, drawing criticism from domestic figures like @NFratoianni on X, who called it a “disgrace.”

Moreover, Italy’s economic fragility amplifies its role in the duties dispute. @rick_rampal noted on X that Italy’s finances are “in tatters,” suggesting that without EU support, it could face debt levels akin to Greece’s. The country’s reliance on EU markets, combined with its push for national exemptions or tailored trade deals, positions it as a potential weak link in the EU’s unified response to external trade pressures.

Broader Implications

Italy’s assertive stance on duties and trade reflects a broader tension between national priorities and EU cohesion. While Meloni’s mediation efforts, such as hosting EU-U.S. talks on trade and Ukraine, have been praised—U.S. Vice President JD Vance called her a “bridge builder”—her government’s policies risk alienating EU partners. The EU’s 27% drop in irregular border crossings in 2025, reported by Frontex, suggests progress on migration, yet Italy’s insistence on ECHR reforms indicates ongoing friction.

As the EU navigates Trump’s tariff threats, Italy’s push for favorable terms, coupled with its domestic policy clashes, underscores its role as a focal point in the duties debate. While the EU strives for unity, Italy’s actions—driven by economic necessity and nationalist priorities—highlight internal divisions that could complicate the bloc’s global trade strategy.