The EU's economic stability is closely tied to its trade relationship with the US, making any protectionist measures particularly concerning.
Germany and Italy's economies could face severe consequences if US tariffs are implemented, potentially leading to a decrease in economic growth.
The warning from Gentiloni aligns with concerns from German officials about the potential negative impact of tariffs on their economy.
If tariffs are imposed, Germany and Italy may experience a significant decline in exports to the US, leading to economic contraction.
Increased tariffs could trigger retaliatory measures from the EU, escalating trade tensions further.
The US economy might also suffer from higher inflation and reduced consumer spending due to increased costs of imported goods.
European Economic Commissioner Paolo Gentiloni has warned that the potential implementation of protectionist trade policies by the incoming US administration could significantly impact both the United States and Europe. He highlighted that Germany and Italy are particularly vulnerable due to their substantial trade surpluses with the US, making them the most affected EU countries by the proposed tariffs. Gentiloni emphasized that the integration between the US and EU economies is crucial for maintaining stability and that any shift towards protectionism could lead to increased inflation and economic strain on both sides. He called for collaboration with the new US administration to uphold a strong transatlantic trade agenda and ensure open international trade channels.
Italy and Germany are the EU countries most exposed to the anticipated US tariffs, as they export a significant portion of their goods to the United States. Gentiloni's remarks were made during the presentation of the European Commission's autumn economic forecasts, where he underscored the potential repercussions of US protectionist policies on these economies.
