Italy’s Meloni warns of western fracture as trump tariffs threaten transatlantic trade war

ROME — Italian Prime Minister Giorgia Meloni issued a direct warning this week about the growing danger of a trade conflict within the Western alliance, as US President Donald Trump’s proposed 30 percent tariffs on European and Mexican imports set off alarms across EU capitals.

In a carefully worded statement released by her office, Meloni described the proposed US tariffs, set to take effect on August 1, as a threat to the cohesion of Western nations amid an increasingly volatile global landscape. “A trade war within the West would weaken us all in the face of the global challenges we are confronting together,” she said, emphasizing Italy’s commitment to negotiating a balanced solution.

Trump’s announcement, delivered at a campaign rally in Ohio on July 12, reignited long-dormant fears of economic nationalism and unilateralism, reminiscent of his 2018 tariff battles. Now, with global supply chains still fragile and the European economy facing sluggish growth, Meloni’s warning has taken on added urgency.

Following the announcement, the European Commission confirmed it would not immediately retaliate, opting for restraint in hopes of a negotiated resolution. European Commission President Ursula von der Leyen stated that Brussels would delay the deployment of any countermeasures to avoid “unnecessary escalation,” according to Reuters.

Despite this, officials in Brussels have already prepared a set of retaliatory tariffs totaling €72 billion, with an additional €21 billion targeting high-value American exports ready for activation if talks collapse. Italy’s Foreign Minister Antonio Tajani told Reuters that the EU “will not hesitate to act decisively” if Trump’s measures go into effect without compromise.

Domestically, Meloni has faced criticism for her measured stance. Giuseppe Conte, the populist leader of the Five Star Movement and a prime minister, accused her of “yielding to US pressure” and failing to defend Italian economic interests, according to FMT (Free Malaysia Today).

The stakes for Italy are particularly high. According to the Italian Trade Agency, nearly 10 percent of Italy’s total exports,valued at over €65 billion annually, go to the United States, with luxury goods, automotive components, industrial machinery, and agri-food products making up a significant portion. A prolonged trade war could devastate small and medium-sized enterprises across Italy’s north, where export manufacturing dominates the economy.

Confindustria, Italy’s leading industrial federation, has issued stark warnings about the potential fallout. “These tariffs would directly hit the core of Italian industry,” said the group’s president Emanuele Orsini. “From Parma’s cheese producers to Turin’s automotive suppliers, thousands of jobs are on the line.”

In Brussels, the response strategy has been divided. While von der Leyen’s team advocates for caution, some EU members, particularly France and Spain, are urging faster retaliatory action. Trade Commissioner Valdis Dombrovskis told Financial Times that “all options are on the table,” including the use of the EU’s recently passed Anti-Coercion Instrument, which allows for rapid trade retaliation without waiting for World Trade Organization approval.

This moment recalls the 2018 trade standoff, when Trump imposed steel and aluminum tariffs on EU allies, prompting months of retaliatory measures. But analysts warn the economic and geopolitical environment in 2025 is far more precarious.

Meloni struck a tone of resilience and pragmatism: “Italy will do its part, as always,” she said. Whether that part includes de-escalation or confrontation may depend on what happens in the next two weeks.