In the wake of potential new tariffs announced by the United States, Italian Prime Minister Giorgia Meloni has engaged in urgent discussions with EU leaders, including European Commission President Ursula von der Leyen.

Meloni's recent decision to cancel a scheduled visit to Vibo Valentia underscores the seriousness with which her government is approaching the situation, which threatens to undermine portions of Italy’s economy.

The discussions, held at Palazzo Chigi, involved key government ministers, including Giancarlo Giorgetti, Adolfo Urso, Francesco Lollobrigida, and Tommaso Foti, as well as the two deputy prime ministers, with Antonio Tajani participating remotely from Brussels.

The meetings were precipitated by a request from the U.S. government, spearheaded by former President Donald Trump, for a list of Italian products that could be affected by proposed import taxes.

Approximately thirty goods are reportedly under consideration for protection in the ongoing discussions.

Meloni conveyed to her ministers the importance of remaining calm amidst the uncertainty.

She emphasized that alarmist reactions could have a detrimental effect on public sentiment and financial markets, potentially exacerbating the impact of the tariffs.

The sentiment during the meeting inclined towards exploring negotiation strategies rather than escalating tensions.

Historical precedents regarding tariff application by Trump, particularly towards Mexico and Canada, were discussed as indicative of both a political tool and a negotiation tactic.

While contemplating international strategies, the Italian government is also considering domestic measures in response to this trade challenge.

Minister Francesco Lollobrigida has advocated for European subsidies aimed at protecting Italy’s agro-food sector, which is likely to be severely impacted by the tariffs.

Meloni has directed Giorgetti to evaluate options for financial relief within Italy's budget framework, suggesting a potential decree could allocate up to 5 billion euros to support affected industries.

However, several officials cautioned against premature estimates of economic damage.

The government’s strategy appears to focus on absorption of tariff impacts within supply chains.

Notably, high-end products, such as Brunello wine, are expected to remain resilient in the face of increased costs, as buyers in these segments are less price-sensitive.

Additionally, Italy’s precision manufacturing sector has been identified as vital and not easily replicable by competitors facing even higher tariffs.

The consensus among Meloni and her advisers is to maintain a level-headed approach, prioritizing the preservation of trade relations with the United States, which accounts for 10% of Italy's exports.

Alternative markets, such as Saudi Arabia and Qatar, were also discussed as potential avenues for diversification of export opportunities.

However, Meloni reiterated the importance of sustaining and evolving the transatlantic partnership, cautioning against viewing the U.S. solely as a competitor.

During her conversation with von der Leyen, Meloni called for a shift in European Union policy that could involve re-evaluating the Stability Pact and modifying certain elements of the Green Deal that have been contentious for her administration.

These proposals are part of Italy's agenda for forthcoming EU discussions, aimed at transforming the current challenges into opportunities for economic growth.

The prime minister’s planned visit to Washington remains postponed until assurances of a favorable outcome from the discussions can be secured.