Italian SMEs Face Economic Threats from New U.S. Tariffs
Conflavoro predicts significant job losses and export declines, urging a unified response.
The Conflavoro association representing small and medium-sized enterprises (SMEs) in Italy has released troubling forecasts following the announced increase of tariffs by the U.S. government under President Donald Trump.
These new tariffs, which impose a 20% increase on European Union products, are projected to result in a 0.1% contraction in Italy's gross domestic product (GDP), a loss of €2 billion in exports, and threaten approximately 30,000 jobs across various sectors.
Roberto Capobianco, President of Conflavoro, emphasized the potential for a cascading effect on auxiliary industries, households, and overall consumer spending.
He highlighted concerns that this international trade decision could evolve into an urgent domestic employment crisis, particularly given the limited capacity of the current system to rapidly retrain affected workers.
Capobianco called for a coordinated approach among the government, businesses, and social partners to respond robustly to Trump's decision, advocating for maintaining the competitiveness of Italy’s production fabric and the quality of its renowned products.
Prime Minister Giorgia Meloni’s immediate response, which includes convening a summit with industry associations to address the concerns of SMEs, was positively noted by Capobianco.
According to data from Conflavoro's research center, the agriculture and food sector is expected to suffer a major hit, estimating a loss of €700 million, particularly affecting products such as wine, cheese, and olive oil, with an anticipated loss of 5,000 jobs.
The fashion and luxury sectors are projected to incur losses around €400 million, potentially leading to a decrease of 4,000 jobs, while the automotive and mechanical sectors could see a contraction of around €500 million with a similar loss of employment.
The economic implications of the possible job losses also extend to social safety nets, with additional costs arising from unemployment insurance, which could reach up to €160 million for social shock absorbers related to job losses.
Moreover, with the NASPI unemployment benefit program potentially costing an additional €125 million, the total financial strain on the Italian economy could be significant.
These analyses underscore the immediate challenges facing Italian SMEs in light of heightened tariffs and the broader implications for the national economy.
The full impact of these tariff increases will depend on the response from both the Italian government and the affected industries.
These new tariffs, which impose a 20% increase on European Union products, are projected to result in a 0.1% contraction in Italy's gross domestic product (GDP), a loss of €2 billion in exports, and threaten approximately 30,000 jobs across various sectors.
Roberto Capobianco, President of Conflavoro, emphasized the potential for a cascading effect on auxiliary industries, households, and overall consumer spending.
He highlighted concerns that this international trade decision could evolve into an urgent domestic employment crisis, particularly given the limited capacity of the current system to rapidly retrain affected workers.
Capobianco called for a coordinated approach among the government, businesses, and social partners to respond robustly to Trump's decision, advocating for maintaining the competitiveness of Italy’s production fabric and the quality of its renowned products.
Prime Minister Giorgia Meloni’s immediate response, which includes convening a summit with industry associations to address the concerns of SMEs, was positively noted by Capobianco.
According to data from Conflavoro's research center, the agriculture and food sector is expected to suffer a major hit, estimating a loss of €700 million, particularly affecting products such as wine, cheese, and olive oil, with an anticipated loss of 5,000 jobs.
The fashion and luxury sectors are projected to incur losses around €400 million, potentially leading to a decrease of 4,000 jobs, while the automotive and mechanical sectors could see a contraction of around €500 million with a similar loss of employment.
The economic implications of the possible job losses also extend to social safety nets, with additional costs arising from unemployment insurance, which could reach up to €160 million for social shock absorbers related to job losses.
Moreover, with the NASPI unemployment benefit program potentially costing an additional €125 million, the total financial strain on the Italian economy could be significant.
These analyses underscore the immediate challenges facing Italian SMEs in light of heightened tariffs and the broader implications for the national economy.
The full impact of these tariff increases will depend on the response from both the Italian government and the affected industries.
Translation:
Translated by AI
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