US tariffs on goods from the European Union will come into force on 2 April 2025. President Trump made the announcement, dubbing this date "reciprocal tariff day". The US president stated that if the Union wants to avoid or reduce tariffs, it can "simply cancel or lower those it imposes on the United States". However, he makes a mistake here, whether out of bad faith or ignorance is unclear. Among the tariffs attributed to the EU, he also includes VAT (which is paid on all goods, not just imported ones, and is borne by the final consumer rather than the producer) and taxes applied to technology companies (which make extensive use of tax evasion or avoidance practices).
Italy will not be exempt from this measure, as explained by US Secretary of Commerce Howard Lutnick in discussions with correspondents from several Italian newspapers. Lutnick clarified that good relations with the Italian Prime Minister will not exclude Italy from these tariffs. When challenged with the argument that tariffs generate inflation, the US secretary responded that it is not tariffs that cause inflation but the production of money. Therefore, printing less money will be sufficient to lower prices. Moreover, tariffs should replace domestic taxes—an outlook that seems overly simplistic.
The Trump administration’s lack of a clear vision or strategy on tariffs, and its tendency to act opportunistically, is evident from the fact that on the same day Trump announced tariffs on the European Union, he also postponed by a month those on the automotive sector in Canada and Mexico. This decision came under pressure from the USMCA automotive manufacturers' association, which explained to the president that car production is so interdependent among the three countries that tariffs would also harm US citizens by increasing car prices by thousands of dollars and disrupting supply chains. The administration is reportedly also considering exempting certain agricultural products from the two neighbouring countries from tariffs.
