As of August 7, 2025, the United States has imposed reciprocal tariffs on 92 countries and regions, with rates ranging from 10% on goods from the United Kingdom to 50% on imports from India and Brazil.
Imports from the European Union now face a 15% base tariff, rising to 50% for steel and aluminum, following a U.S.–EU trade agreement announced July 27. While the deal helped avoid a broader 30% tariff proposal, ongoing discontent among EU member states continues to complicate the path forward.
How Are Italian Exports Affected by U.S. Tariffs?
Italy’s exports to the United States totaled €65 billion ($70.2 billion) in 2024, making the U.S. Italy’s largest non-EU trading partner. Key sectors such as agrifood, wine and spirits are lobbying for exemptions. Italian Prime Minister Giorgia Meloni pledged to “do everything possible to protect national interests,” emphasizing that many Italian products are “unique and irreplaceable by U.S. equivalents.”
Which Italian Industries Are Most Impacted by the New Tariffs?
Several sectors are already impacted, with varying degrees of exposure depending on product classification, supply chain flexibility, and U.S. market reliance.
Semiconductors
President Trump announced plans to impose a 100% tariff on chips and semiconductors, with exemptions for companies building or committing to build in the U.S. No official implementation date has been confirmed.
Agri-Food and Luxury Experts
Prices on Italian specialty foods and luxury exports have already increased, with many consumers absorbing the added cost. While mass-market goods may feel pressure, premium Italian products with a loyal clientele are expected to remain relatively resilient:
- Olive oil prices in the U.S. have risen due to tariff pass-through costs.
- Parmigiano Reggiano and other protected designation of origin (PDO) cheeses face tariffs between 15% and 50%, depending on classification.
- Italian wine exports, €1.9 billion ($2.07 billion) in 2024, are particularly vulnerable, with no confirmed exemptions.
Furniture, Manufacturing & Distribution
Italian manufacturers are actively considering U.S. acquisitions to shift production stateside. Some are targeting existing partners, while others are exploring new strategic opportunities. The success of these moves will depend on the ability to replicate Italian quality and craftsmanship within U.S. facilities.
Fashion and Apparel
Many Italian fashion brands are absorbing the 15% tariff to maintain pricing and competitiveness. U.S. retailers continue to value Italian design but may seek cost-sharing arrangements or renegotiated contracts.
Strategic Recommendations for Italian Companies
While the 15% tariff is now in effect, the broader trade landscape remains uncertain. Italian companies should prepare to:
- Reassess pricing strategies to maintain margins without losing market share.
- Explore U.S. partnerships or acquisitions to localize production.
- Negotiate with U.S. retailers to share tariff burdens.
- Monitor exemption negotiations and adjust inventory or shipping timelines.
- Engage advisors to assess long-term tax and operational implications.
Grassi’s Italian Practice helps U.S. and Italian companies operate successfully in both countries. Our highly experienced tax and accounting professionals offer business structuring and operational advice, cross-border transaction support, international and domestic tax planning strategies, and guidance on securing funding and managing your cash flow. Contact us today or visit Grassi’s Tariff Hub for more information.
