Italy’s top industrial association, Confindustria, has raised alarms about the long-term economic consequences of the United States’ tariff policies. According to the association, these tariffs are generating significant uncertainty that could lead to a "structural crisis" in Italy's manufacturing sector, which is expected to be the hardest hit.

Confindustria’s research highlights that the ongoing confusion surrounding the US tariff measures is slowing trade and investment. Even before the tariffs were introduced, Italy was grappling with economic challenges, including weakening industrial demand, unstable financial markets, and declining investment.

While the reduction in energy and transport costs, along with lower interest rates in the eurozone, are providing some support, the tariffs have emerged as one of the major obstacles to Italy’s growth prospects.

The association emphasized that the continuous fluctuations in tariffs are impeding decision-making, particularly regarding trade and investment. Italy's manufacturing sector remains highly reliant on exports, with the US being a key destination for Italian goods, especially machinery, pharmaceuticals, and motor vehicles.

Confindustria forecasts that the uncertainty caused by these tariff policies will slow Italy's GDP growth by 0.3% in 2025-2026, primarily due to reduced exports and lower investments in machinery. The US remains Italy's top non-EU partner for goods, services, and foreign direct investment, accounting for over 10% of Italy’s manufacturing sales abroad.

This ongoing situation underscores the deepening challenges that Italian manufacturers face in a volatile global trade environment.