US President Donald Trump sparked fears in Italy over the weekend after saying that his government would begin to target products responsible for the US trade deficit, including the Vespa scooter.
National daily Il Messaggero ran the headline “Trump declares war on the Vespa”, which was one of 90 European products on the President’s blacklist. Trump has said he intends to impose 100 percent duties, issuing two executive orders to pinpoint goods and countries responsible for the near $50-billion deficit.
Italian Prime Minister Paolo Gentiloni voiced his concern over the shift in policy towards a more protectionist stance, which could also affect Italian tomatoes, salami and Parma ham.
Italy’s exports to the United States were worth €37 billion in 2016, just over ten percent of the European Union’s total of €362 billion.
Trump’s executive orders included the commissioning of a report on trade practices that contribute to the trade deficit, and another that will analyse the collection of anti-dumping and countervailing duties. Both will aim to identify every trade abuse and “non-reciprocal practice” that have contributed to the trade deficit.
The crack-down on imports from Trump represents a shift towards a more protectionist US policy, which many believe could represent a threat to the growth of the overall economy. 83 percent of respondents on Wall Street to a CNBC survey had a negative outlook on Trump’s trade agenda.