Trump’s sweeping new tariffs send global stocks plunging as U.S. allies plan reaction

Italy’s Prime Minister Giorgia Meloni said the 20% tariff imposed on the EU was “wrong” but added the bloc should try to avert a trade war. Meloni on Thursday cancelled all engagements for the day to focus on Italy’s actions in response to U.S. tariffs, the Italian government said in a statement.

“The tariffs are wrong and not in the interest of either party,” Meloni, a close ally of President Trump, said in a post on Facebook on Thursday. “We will do everything we can to work towards an agreement with the United States, with the goal of avoiding a trade war that would inevitably weaken the West in favor of other global players,” she added.

Italy’s food and drinks industry will be hit hard by the new tariffs, and Meloni on Wednesday told business leaders in the sector that the EU may need to adopt “appropriate responses,” according to Reuters.

Italian trade association Federvini also said it was bracing to relive the “economic trauma” caused by tariffs in Trump’s first term, when exports fell by 50%.

“Many labels, which cannot be replaced by local production, will disappear from the tables of U.S. consumers, while a serious production and employment crisis is looming in Italy and Europe,” Federvini President Micaela Pallini said in a statement.