Trump's tariffs

Enterprises

The Made in Italy alarm: goodbye competitiveness with tariffs

Mascarino (Federalimentare): 'Rates at 17% unsustainable'. Ponti (Federvini): 'This way it is inevitable to lose volumes'. Cattani (Farmindustria): "If it is 10%, 1.5 billion at risk

by Luca Orlando

6 July 2025

5' min read

Key points

Tariffs at 17%? "Unsustainable"
Mechanics and pharmaceuticals, the most exposed sectors
Furniture-Wood and Automotive

5' min read

"Concerned? I would say. Because putting tariffs and the fall of the dollar together, it is difficult to stand firm with the price lists. In some contracts we have automatisms for increases, with other customers we will suffer more'.

A 65 billion euro export

Legitimate fears those of Ugo Pettinaroli, CEO of the eponymous Novara-based valves and fittings group, which generates 140 million in revenues in the US, two thirds of its business. Certainly not the rule, but nevertheless not exactly an exception, for a country that sells almost 65 billion euros to Washington, its second largest export market, now just a step behind Germany.

A small treasury (the surplus with the USA is the largest, almost 40 billion) put at risk by the combined effect of tariffs and the fall in the dollar, forcing companies to choose the less painful path of margin compression and upward retouching of price lists. That would become inevitable if, as circulated yesterday, for the agro-food sector (7.7 billion in exports to the USA) a 17% level were to be reached.

17% tariffs? "Unsustainable"

"If 10% could have been a sustainable compromise in order to guarantee access to the American market for our companies," explains the president of Federalimentare Paolo Mascarino - 17% would exceed the threshold of tolerability, greatly increasing the risk of a significant drop in exports, even in light of the current devaluation of the dollar. The US is well aware that the EU is the world's leading food exporter (235 billion in 2024, of which 13% to the US), and therefore threatens our strategic sector in order to gain advantages over other sectors of US interest. However, we have full confidence in the actions of President Meloni, who has perfectly understood the importance of the US market for the national agri-food sector, knows our red lines and is clear about the perimeter within which to negotiate a sustainable compromise for all our companies. If US tariffs are not sustainable,' he adds, 'in order to protect food companies we ask the EU for public intervention: just as the US did with tariffs, which is in fact public intervention to protect their industry, we ask for it too. We are not thinking of subsidies, but of temporary support through European intervention, similar to what was done during the pandemic emergency.

The United States is a vital market for Italian food exports, the second destination behind Germany, 14% of our total exports. "Our government is successfully conducting a complex negotiation in Europe to contain all those who would like a muscular response to the threat of US tariffs, a strategy that would risk being self-defeating for Europe and Italy in particular. The European food industry should concentrate its efforts on activating a strong and united protest by our US importers against the Trump administration, to protect their interests and those of US consumers, because they will then be the ones who will have to pay most of the tariffs to the US tax authorities"..

"The 17% that is being talked about? It would be a very hard blow,' stresses Assolatte president Paolo Zanetti, 'totally unsustainable for the sector, because it would significantly reduce our dairy exports. The EU aims at 10%, the maximum tolerable, otherwise they will kill our market'. 'If the agreement were to be closed at 10%,' adds Federvini President Giacomo Ponti, 'spreading the sacrifices along the value chain might not affect sales. With tariffs at 17%, on the other hand, consumer prices will increase, reducing demand in particular for mid-range products and relaunching Italian sounding. Moreover, the double-digit fall of the dollar is added to the tariffs problem and this also goes in the direction of price increases. Covering oneself is possible but costly, in the order of 2-3% of the figure involved'.

Mechanics and pharmaceuticals, the most exposed sectors

The largest area in terms of sales to Washington (almost 13 billion) is that of instrumental mechanics and components, where there are fewer fears. 'Some companies have already increased prices,' explains the president of Federmacchine Bruno Bettelli, 'also because margins are low in our sector, there is little to compress. There are those who are already reporting some reduction in demand, although on average we think that with tariffs at 10% the impact will be reduced. After all, these are technologies that the US does not have, and at the moment China has higher tariffs than us, so it is at a disadvantage, which is why I remain optimistic on average'.

With over 10 billion in exports to the USA, pharmaceuticals are also among the most exposed sectors, a sector that has so far been 'pardoned'. "There is cautious optimism towards a negotiation that confirms zero tariffs," explains the president of Farmindustria Marcello Cattani, "while with tariffs at 10% the estimate is that we would lose between one and 1.5 billion in revenue for our sector. But the damage, in reality, would be for US families, who would pay more for both drugs and health insurance. It is also an industry where reshoring is long and complex, it takes 4-5 years to start greenfield production. That is why I think 'zero' tariffs can be confirmed'.

Furniture and Automotive

Also on the alert is Federlegno (2.2 billion in exports), which in a survey sees possible impacts from tariffs for almost half of the companies surveyed. "In the USA the slowdown is already visible," explains FederlegnoArredo President Claudio Feltrin, "and many customer orders are on stand-by. If the drop point was 10% it would not be welcome but it could be managed. And in any case an agreement would put an end to this great uncertainty, unblocking market decisions".

Also affected is the area of auto-related components, not only for the part directly shipped to Washington (1.2 billion) but also for what is directed to Germany for cars destined for the transatlantic, a demand that may tend to decrease. Taking into account tariffs on the sector that are currently at 25%, a level that leads companies to explore new avenues. Such as Paoli, supplier of pit stop guns for the Nascar and Indy circuits, 10 million revenue, a quarter of which is in the USA. "We are thinking of buying steel and titanium across the Atlantic, so that we can process it here and re-export it at zero tariffs,' explains president and CEO Francesca Paoli, 'although the convenience of the operation is to be assessed: it will depend on the level reached after the agreement with the EU.