Tariff impacts mitigated for Italy companies says BoI

Rome: The impacts of Donald Trump’s tariffs on Italian companies will be mitigated by their qualitative positioning and high profitability, the Bank of Italy said Friday.

“The sectoral composition, qualitative positioning and good level of profitability of Italian companies operating on the US market could mitigate the consequences of the drop in demand from the United States, at least in the short term”, the Bank of Italy said in its latest economic bulletin.

It said exports to the US, directly and indirectly, are worth 8.1 percent of the added value of Italian manufacturing and approximately 1.2 percent of GDP and that, certainly, “in the long term, exports will be affected by the effects of the increase in tariffs” by the US president.