Italian Prime Minister Giorgia Meloni has urged the European Union (EU) to avoid engaging in a retaliatory tariff war with the United States, warning that escalating trade tensions could fuel inflation and economic instability across Europe.
Speaking ahead of an EU leaders’ summit in Brussels, Meloni cautioned against reacting to US-imposed tariffs with countermeasures, emphasizing that such a response could lead to an economic downturn that neither side can afford. She called on the European Commission to initiate urgent negotiations with the Trump administration to prevent further escalation.
“It is not wise to fall into the temptation of reprisals that become a vicious circle in which everyone loses. We must continue to work concretely and pragmatically to find common ground and avoid a trade war that would benefit neither the US nor Europe,” she told the Italian Parliament on Tuesday.
Her remarks come as Brussels prepares to impose tariffs of up to 50% on key US imports, including whiskey, motorcycles, and jeans, starting April 1. This move follows Washington’s reintroduction of a 25% levy on European steel and aluminum imports. In response, US President Donald Trump has threatened a 200% tariff on all European alcohol imports, including Italian wine and spirits.
The trade tensions, which began during Trump’s first term as a dispute over trade imbalances and industrial subsidies, have escalated into retaliatory tariffs affecting multiple industries, including steel, aluminum, agriculture, and technology.
Meloni, the only European leader to attend Trump’s inauguration, has maintained a diplomatic approach, balancing strong ties with Washington while aligning with the EU’s stance on global trade and security.
She has criticized the EU’s strategy of countermeasures, warning that an escalating trade war would weaken the European economy by reducing purchasing power and potentially forcing the European Central Bank (ECB) to raise interest rates.
“The result would be inflation and monetary tightening that dampens economic growth. Italy’s energies must be spent in the search for common-sense solutions between the US and Europe,” she stated.
The economic implications of the ongoing tariff war are significant. The imposition of tariffs on steel and aluminum, along with retaliatory measures, has already led to price increases and disruptions in supply chains. European businesses, particularly in the luxury goods and agricultural sectors, could suffer from reduced access to the US market, while American industries could face higher costs on imported European products.
At the heart of this trade conflict lies a broader debate over economic sovereignty and transatlantic cooperation. While some EU leaders advocate for greater independence in trade and defense, others, including Meloni, have stressed the importance of maintaining strong ties with the US.
Beyond trade, Meloni has also addressed Europe’s defense strategy, pushing back against calls from France and Germany for greater European military autonomy. She reaffirmed Italy’s commitment to NATO and transatlantic security, arguing that Europe cannot ensure its own defense without the support of the US.
“It is at best naive and at worst crazy to think that today we can secure Europe without NATO,” she said, reiterating her belief that the Euro-Atlantic framework remains essential for stability.
Meloni also voiced concerns over the EU’s €150 billion ReArm Europe initiative, a Brussels-led plan to finance national defense investments through joint loans. She suggested that the proposal could lead to unsustainable debt levels for heavily indebted nations like Italy, which already carries a debt burden of over 135% of GDP.
Additionally, she dismissed proposals from France and Britain to deploy European troops to Ukraine, warning that such an intervention could be both risky and ineffective. However, she acknowledged the need to strengthen Italy’s defense capabilities, particularly in countering cybersecurity threats, hybrid warfare, and infrastructure security.
As the economic and political fallout from the EU-US tariff dispute continues to unfold, the potential consequences extend beyond trade and diplomacy. The situation raises questions about global trade stability, economic recovery post-COVID, and the future of transatlantic cooperation.
With the EU and US locked in an escalating tariff battle, Meloni’s call for pragmatic diplomacy reflects growing concerns among European leaders that protectionist policies and trade restrictions could lead to long-term economic instability. The next few months will be critical in determining whether both sides can reach a compromise or if the trade conflict will deepen, with lasting effects on global markets and political alliances.
