The prestigious “Made in Italy” brand, a global symbol of quality and craftsmanship, is under siege from the twin threats of a new US tariff and a volatile currency market. The new US-EU trade deal has created a perfect storm that Italian business leaders fear will cause unprecedented damage to their export economy.
The first blow is the 15% US tariff that will apply to a wide range of Italian goods, from luxury fashion and leather products to high-tech machinery and gourmet foods. This tax directly undermines the competitiveness of these products in their most important non-EU market.
The second blow, as highlighted by Italy’s business confederations, is the predicted devaluation of the US dollar against the euro. This currency shift would make Italian goods even more expensive for American buyers, effectively creating a combined surcharge approaching 30%. For a brand built on attainable luxury, this could be a fatal price hike.
This dual threat has led to a furious reaction from Italy, with business leaders calling the deal an “unfair and disproportionate tax.” There is a strong sense that the unique nature of Italy’s diverse, brand-driven export economy was ignored in a deal focused on the singular issue of German cars, leaving the “Made in Italy” brand dangerously exposed.