**Rome**: Italy’s Minister of Enterprises, Adolfo Urso, urged the suspension of Green Deal regulations, citing their negative effects on the automotive sector, exacerbated by new American tariffs. He called for a shift towards local procurement and criticised policies hindering competitiveness in Italy’s vital export industries, including wine.
In a recent address to the Senate, Italy’s Minister of Enterprises and Made in Italy, Adolfo Urso, called for the immediate suspension of Green Deal regulations, citing their detrimental impact on the automotive industry. His remarks came in the wake of new American tariffs, which impose a 25% levy on cars produced outside the United States. Minister Urso deemed these tariffs an additional burden on an already struggling sector, which has been significantly affected by ongoing trade tensions.
The automotive industry, a cornerstone of the Italian economy, is currently grappling with the ramifications of this trade war initiated by President Donald Trump’s administration. Urso highlighted the urgency of halting Green Deal mandates, including a scheduled ban on the sale of internal combustion engine vehicles by 2035, arguing that such policies have contributed to what he referred to as the collapse of the automotive sector. He characterised these measures as “ideological” barriers that mirror “self-imposed tariffs,” echoing similar sentiments expressed by Prime Minister Giorgia Meloni.
In his address, Urso advocated for a shift towards a “buy European” principle, calling for preferential treatment in public procurement for European products to stimulate investment in local industries. He stated, “We ask for an immediate shock of deregulation that frees European companies from constraints and restrictions,” underscoring his view that the current regulations are hindering competitiveness in the automotive market.
This sentiment of urgency is further mirrored in the Italian wine industry, which is also facing challenges due to new American tariffs. The upcoming Vinitaly wine fair, scheduled to take place in Verona from April 6 to 9, is being spotlighted as a significant event for Italian wine exporters, who are currently contending with a 20% tariff imposed on European agri-food products, including wines.
In a statement, the General Director of Vinitaly, Adolfo Rebughini, mentioned that the event will host around 4,000 companies and 1,200 top buyers from 71 countries, the largest delegations of which include 120 American buyers. Despite the looming tariffs, Italian wine continues to maintain a competitive edge in the U.S. market, having previously outperformed French wines. Industry leaders are hopeful that innovative solutions can be found to mitigate the impacts of tariffs in ongoing trade relations.
Fabrizio Bindocci from the Brunello di Montalcino Consortium warned that the new tariffs could severely impact the industry, stating, “These tariffs will inevitably hit our denomination hard.” On the other hand, Vitaliano Maccario from the Barbera d’Asti Consortium expressed confidence that price increases could be absorbed by consumers, helping maintain sales.
The Italian wine industry is also seeking ways to explore new markets, with a particular emphasis on South America, Asia, and Africa. Giovanni Busi from the Chianti Consortium echoed the need for diversification, stating that efforts must be made to bolster presence in emerging markets while maintaining existing relationships with U.S. consumers.
Meanwhile, on the geopolitical front, reports indicate an escalating tension between the United States and European nations, particularly regarding defence spending. The European Commission has proposed a plan to bolster defence industry reliance on local suppliers, which has caused concern in Washington. U.S. Secretary of State Marco Rubio was recently vocal about the importance of securing American suppliers on European public procurement projects, viewing exclusion from these markets unfavourably.
As the situation continues to unfold, both the Italian government and industry leaders remain engaged in proactive measures to navigate these new challenges. The collective response from various sectors illustrates a recognition of the need for strategic planning amid evolving trade dynamics, while also aiming to protect the integrity of established industries within Italy. The outcome of ongoing negotiations and adaptations to the tariff landscape will be pivotal for the future of Italian exports, particularly in sectors as vital as automotive and wine.
Source: Noah Wire Services
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