News

Italy’s Meloni to meet Trump amid ongoing EU-US trade tensions

Italy’s Prime Minister, Giorgia Meloni, is set to meet former US President Donald Trump in Washington this Thursday. This meeting occurs amidst ongoing trade tensions between the European Union (EU) and the United States. Recently, EU-US negotiations failed to resolve critical issues regarding Trump’s trade tariffs, leaving many questions unanswered.

Moreover, Meloni, a conservative nationalist, has built a personal rapport with Trump. He has publicly praised her, referring to her as a “wonderful woman” and a “strong” leader. In light of the escalating trade tensions, she has urged the EU to avoid retaliatory measures. Instead, she advocates for open dialogue with Washington to bridge existing gaps.

The recent talks between the EU and the US primarily focused on Trump’s tariffs. Currently, these tariffs impose a 25% duty on steel, aluminum, and automobiles, while a 10% duty applies to other exports during a 90-day suspension. Should negotiations fail, the US threatens to reinstate a 20% “reciprocal tariff” on EU exports. Frustrated EU trade negotiators express concern over the lack of clarity from the US side, which Meloni hopes to address during her meeting with Trump.

Fidelity Leaderboard

Before her departure for Washington, Meloni reassured Italian business leaders about her commitment to finding a resolution. She acknowledged the difficulties, stating, “We know we are in a difficult moment.” Furthermore, she emphasized that Italy has overcome greater obstacles in the past, showcasing her determination.

In addition, Meloni has publicly endorsed the EU’s proposal to eliminate all tariffs on industrial goods, contingent upon US reciprocity. However, diplomats indicate that Washington appears uninterested in reducing its tariffs. Consequently, the current 10% rate may become permanent, complicating matters further.

To prepare for her trip, Meloni has maintained consistent communication with European Commission President Ursula von der Leyen. According to Stefano Stefanini, Italy’s former ambassador to NATO, Meloni’s direct engagement with Trump could yield valuable insights into US objectives. He remarked, “The US trade representative doesn’t really know what Trump wants.”

Stefanini also suggested that Trump might pressure Europe to distance itself from China. He explained that if the EU strikes a deal with the US, it may have to further de-risk or decouple from China as a result. This potential shift could have significant implications for EU-China relations.

Meanwhile, the EU has initiated several anti-subsidy investigations against Chinese companies. Additionally, the EU has imposed its own tariffs on Chinese imports, although these rates remain significantly lower than Trump’s tariffs, which can reach up to 145%.

China, in response, has intensified its lobbying efforts with European leaders. Recently, President Xi Jinping urged both China and the EU to “jointly resist unilateral bullying.” Despite this, Meloni views China cautiously, recognizing it as a strategic rival. In fact, she officially withdrew Italy from China’s Belt & Road Initiative in 2023.

While some EU member states express unease regarding Italy’s reluctance to support retaliatory tariffs, diplomats from four countries have shown no objection to Meloni’s visit. Lucio Malan, a senator from Meloni’s right-wing Brothers of Italy party, commended her for demonstrating “courage” by engaging directly with Trump on trade matters typically managed by Brussels.

Malan noted, “It would have been simpler to stay home and say ‘after all, it’s EU business’.” However, Meloni has opted for a different approach, prioritizing direct dialogue.

Stefanini believes Meloni will emphasize the negative impact of US tariffs on Italy. Notably, Trump claims to “love” Italy, from which the US imported $70 billion worth of goods last year. He commented, “When you engage Trump on the basis of ‘national interest’, that’s his favorite language.”

As the meeting approaches, stakeholders on both sides of the Atlantic are closely monitoring whether Meloni’s dialogue with Trump will lead to progress in resolving the trade impasse.


Post Views: 38

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button