On April 2, 2025, a new era began. “Reciprocal” tariffs on imported goods to the United States announced by President Donald Trump will hit all countries that boast a trade balance surplus with the U.S. or similar entry tariffs on American goods. With his “Liberation Day” Trump threw down the gauntlet to global trade, declaring a national emergency to reduce the U.S. domestic trade deficit.
These are the announced duties expected to take effect on April 9: European Union (20%), China (34% rising to 54% considering the tariff already applied), Vietnam (46%), Thailand (36%), Japan (24%), Cambodia (49%), South Africa (30%), India (26%) and Taiwan (32%). A base rate of 10%, on the other hand, will apply to all imports to the United States starting April 5, with the following countries: the United Kingdom, Singapore, Brazil, Australia, New Zealand, Turkey, Colombia, Argentina, El Salvador, the United Arab Emirates and Saudi Arabia. For Canada and Mexico, the largest exporters to the U.S., the previously adopted 25% duties are confirmed.
For the automotive sector, however, a 25% tariff was established on all cars produced outside the United States, which went into effect on April 3.
The trade war is creating uncertainty and concern around the world. The day after the announcement, the world’s major stock exchanges, from Wall Street to Asia, went heavily into the red.
For Italian exports it is certainly a blow: according to many operators, the American market is irreplaceable. The Italian fashion and luxury sector is one of the most exposed, along with pharmaceuticals, food and automotive. In 2024, exports to the U.S. from the footwear, leather goods, tannery and fur sectors reached a value of nearly 3 billion. Confindustria, the Italian industrial federation, estimates that U.S. protectionist escalation may result in a 0.6 percent drop in Italian GDP. The risk of losing thousands of jobs is realistic. The problem concerns not only the export of finished goods but also the price increases that will burden the supply chains of products relocated to Asia. Just think of the complex supply chains of sports shoe brands that will probably have to review their production chains to avoid excessive price increases in the final product.
