Italy and the United States: A growing trade partnership built on trust and opportunity

What’s even more remarkable is the long-term growth. Since 2013, Italy’s exports to the U.S. have almost doubled, from $48.3 billion to $80.5 billion by 2022, marking a 66.6% increase over ta ten-year period (Istat). This consistent upward trend reflects not only the demand for Italian high-end products but also the strength of the relationship between the two nations.

More than food and wine
When most people think of Italian exports, they picture fine wines, Parmigiano Reggiano, Prosciutto, and award-winning extra virgin olive oil. And while these products are high in demand in the U.S., they represent just a small fraction of a much larger business story.

According to most sources, in 2024, the top Italian exports to the U.S. included electrical machinery and equipment, advanced machinery (including computers), vehicles, mineral fuels, and pharmaceuticals. These sectors have become growing segments of Italy’s economic drivers, accelerating growth and opening new opportunities in the U.S. market.

Italian products are synonymous with prestige, innovation, and precision design, making them in high demand in the U.S. Whether it’s cutting-edge medical technology, luxury vehicles, or precision engineering, Italian companies continue to lead on industries far beyond food and wine. Just as a matter of reference, Italian wine exported to the US in 2024 amounted to approximal $ 1.9 billion (Italian Food News).

Political ties are strengthening the economic bond
Beyond commerce, politics plays a key role in trade dynamics. Under Prime Minister Giorgia Meloni, Italy has cultivated an ever-closer relationship with Donald Trump, creating one of the strongest U.S.-Italy partnerships in recent history. Meloni’s right wing rhetoric, and growing influence in Washington was clear when she was the only European leader invited to Trump’s inauguration. She was also a guest at the President residence in Mara Lago ahead of the President’s inauguration.

The US Italy partnership is proving particularly valuable in trade negotiations, particularly during time of geopolitical tension and war. During a March 2025 EU phone call regarding troops deployment in Ukraine, once tariffs were discussed, Meloni took a diplomatic stance, urging her European counterparts to avoid retaliatory measures. Her goal? To position Italy as a deal making player, encouraging cooperation rather than conflict, a move that benefits Italian businesses by keeping trade flowing smoothly.

Trade tensions: More bark than bite
What we can learn from recent history, is that trade disputes often make big headlines but rarely cause lasting economic damage. During Trump’s first administration, for example, the U.S. added a 25% tariff on steel and a 10% tariff on aluminum. In response, the EU retaliated targeting U.S. products such as Harley-Davidson and whiskey. Yet, despite these measures, the period of tension did not last very long. By 2021, the tariff challenge was for the most part resolved, the tariffs removed and regular trade relations restored (Reuters). It is true that price took a while to stabilize, but the noise was bigger than the damage.

The lesson here? Tariff threats and trade tensions often serve as negotiating tools rather than long-term policies. Italian businesses should focus on long-term strategies rather than being influenced by short-term political rhetoric.

US consumers love Italian products—and that’s unlikely to change
Even if new tariffs are confirmed, the demand for Italian products in the U.S. is unlikely to slow down. Italian goods have strong brand value, giving them a level of desirability that is unlike any other product. Whether it is fancy fashion, luxury cars, or premium food and wine, U.S. consumers are willing to pay a premium for high end lifestyle and quality. In fact, higher prices sometimes add to the allure of Italian products, making them feel even more exclusive and desirable. For many consumers, buying Italian is as much about the experience and lifestyle as it is about the product itself.

Looking ahead: Opportunity for growth
Rather than bracing for potential disruption, Italian companies have an opportunity to go on the offensive. By strengthening their U.S. partnerships, expanding their market presence, and promoting the uniqueness of Italian products, they can turn uncertainty into a growth opportunity.

The key lies in staying nimble, exploring new distribution channels, joint ventures, negotiating flexible contracts, and reinforcing their brand marketing. Companies that focus on their core strengths, quality, heritage, and authenticity, will remain competitive, no matter the political climate.

In some strategic sector of renewable energy, micro processing, ship building, complex manufacturing, we may see a relocation of Italian business to the US, making the Italian and US ties stronger than ever.

A partnership built to last
Even as political tension will stay high for some time, the deep-rooted economic ties between the Italy and the US will remain strong. For Italian businesses, the future holds tremendous potential. By staying focused on innovation, quality, and building flexible partnership, they’ll continue to thrive in the U.S. market and potentially boosting Italian ecnomic competitiveness further.

AUD/USD is rising further toward 0.6300 in the Asian session on Monday. The Aussie gains support from speculations surrounding narrower US reciprocal tariffs due to be announced on April 2. Further, strong Australian Manufacturing PMI data, Chinese support measures and a subdued US Dollar underpin the pair.

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