Italian Economy Minister Giancarlo Giorgetti said on Friday that EU nations must act individually against US tariffs, rather than relying solely on a collective EU response.
Speaking at a news conference, Giorgetti said Italy may revise its digital services tax, a key US demand. He also urged the European Central Bank (ECB) to accelerate interest rate cuts.
“For better or worse, each country will also have to take its own steps” in response to US policy, he said.
US President Donald Trump announced plans for new “reciprocal” tariffs on EU goods, including cars. Bank of Italy Governor Fabio Panetta recently warned that full implementation of these tariffs, plus retaliatory measures, could cut EU growth by 0.5 percentage points. He noted Germany and Italy would be hit hardest.
Trump also instructed his trade chief to restart investigations into tariffs on countries that tax US technology firms. The digital services taxes target major US companies, including Google, Facebook, Apple, and Amazon, and have been a longstanding issue in US-EU trade relations. Google recently settled a €326million tax bill with Italy.
“We have already made a few adjustments, possibly more can be considered,” Giorgetti said, without providing details.
Italy currently applies a 3% levy on revenue from digital transactions for companies with sales of at least €750 million. With economic growth slowing amid rising geopolitical and trade tensions, Giorgetti reiterated the need for faster interest rate cuts.
“A European continent facing recession in major economies needs a more accommodative monetary policy,” he said.
Italy’s government will review its growth forecasts in the coming weeks. It had predicted 1.2% growth for 2025, but weak performance in late 2024 could impact this. The Parliamentary Budget Office (UPB) recently lowered its 2024 growth estimate to 0.8%, down from its previous 1% projection in October.
