Published by Global Banking & Finance Review®
Posted on February 28, 2025
2 min readLast updated: January 25, 2026
Add as preferred source on GoogleItaly suggests EU countries respond individually to US tariffs, considering changes to digital taxes and ECB rate cuts to support growth.
By Giuseppe Fonte
ROME (Reuters) - Italian Economy Minister Giancarlo Giorgetti said on Friday that European Union countries would have to respond individually to any trade tariffs imposed by the United States, rather than rely solely on a common EU response.
Speaking at a news conference, Giorgetti added that Italy may consider further changes to its digital services tax - something the U.S. is demanding - and called for more interest rate cuts by the European Central Bank (ECB).
"For better or worse, each country will also have to take its own steps" when responding to U.S. policy, Giorgetti said.
U.S. President Donald Trump has said his administration will soon announce "reciprocal" tariff on goods from the EU, including cars.
Bank of Italy Governor Fabio Panetta said this month that a full implementation of the tariffs threatened before the U.S. election, plus retaliatory measures, would cut EU growth by half a percentage point, with Germany and Italy hardest hit.
Trump also ordered his trade chief to revive investigations aimed at imposing tariffs on imports from countries that levy digital service taxes on U.S. technology companies.
The digital service taxes aimed at dominant U.S. tech giants including Alphabet's Google, Meta's Facebook, Apple and Amazon have been a longstanding trade irritant for multiple U.S. administrations.
"We have already made a few adjustments, possibly more can be considered," Giorgetti said without giving further details.
Italy applies a 3% levy on revenue from internet transactions for digital companies with sales of at least 750 million euros ($780.23 million).
With the economic growth progressively losing traction amid rising geopolitical and trade tensions, Giorgetti reiterated his call for an acceleration of interest rate cuts.
"A European continent that sees recession in some of its major countries needs more accommodative monetary policy," he said, adding Rome will need to review its growth estimates in the next few weeks.
The government had forecast 2025 growth of 1.2%, but the stagnant second half of 2024 leaves an extremely weak platform going into this year.
Italy's Parliamentary Budget Office (UPB) cut this month its growth estimates to 0.8% this year, down from a previous 1% projection made in October.
($1 = 0.9613 euros)
(Reporting by Giuseppe Fonte, editing by Gavin Jones and Philippa Fletcher)
Italian Economy Minister Giancarlo Giorgetti stated that EU countries must respond individually to any US trade tariffs.
Giorgetti mentioned that Italy may consider further adjustments to its digital services tax, which the US has been demanding.
Bank of Italy Governor Fabio Panetta warned that full implementation of the tariffs could cut EU growth by half a percentage point.
The government had forecasted a growth rate of 1.2% for 2025, but recent economic stagnation may lead to a review of these estimates.
Giorgetti called for more accommodative monetary policy, emphasizing the need for interest rate cuts amid rising geopolitical and trade tensions.
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