Increase in US Tariffs for Orsini to 30%
Emanuele Orsini, the President of Confindustria, Italy's largest business confederation, has raised concerns about the impact of the exchange rate between the euro and the US dollar on Italian exports. In a recent statement, Orsini argued that the depreciation of the US dollar against the euro effectively acts as a tariff on Italian goods exported to the United States.
Orsini explained that due to the stronger euro, Italian products become more expensive for US buyers. This increases the cost burden beyond the nominal tariff itself, making it a heavy and potentially unmanageable cost for Italian exporters. For instance, a 10% US tariff on Italian goods would translate into an effective duty of about 23.5%, according to Orsini.
This combined effect of the tariff and unfavourable exchange rate is a significant challenge for Italian exporters, severely impacting Italy's competitiveness in the US market. Orsini reiterated that for Italy, the exchange rate is already a tariff.
The Confindustria President also emphasised the need for Italy to fill its energy gap, with renewable energy and nuclear power as potential solutions. According to a study by Confindustria and Enea, the return of nuclear energy could generate an impact equal to 2.5% of Italy's GDP and create up to 120,000 new jobs.
Orsini also highlighted the potential economic impact of US tariffs on Italy. For example, a 15% US tariff would result in an economic impact of 22.6 billion euros, while a 30% tariff could reach 37.5 billion euros. These figures underscore the significant financial burden that US tariffs could impose on Italy.
In addition, Orsini expects the EU to call for a vote on the Mercosur trade deal, which could bring in 5-6 billion euros for Italy. He also mentioned the possibility of delocalizing Italy's best companies to the US, which could bring 102,000 people.
The exchange rate between the euro and the US dollar has been a topic of concern for many economists and policymakers. According to Orsini, the euro-dollar devaluation is the most important in the world, with a weight of 13%. This emphasises the significant role the exchange rate plays in Italy's economic relations with the US and underscores the need for careful consideration of its impact.
[1] Source: Confindustria Press Release [4] Source: Interview with Emanuele Orsini, President of Confindustria, on Italian television.
- The unfavorable exchange rate between the euro and the US dollar, as argued by Orsini, creates a heavy cost burden for Italian exporters in the other industry, making their goods comparatively more expensive and impacting their competitiveness in the US market.
- The potential US tariffs could impose a significant financial burden on Italy's finance sector, with a 15% tariff leading to an economic impact of 22.6 billion euros, according to Orsini's estimates.
