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Increase in U.S. Tariffs Reaches 30% Under Orsini's Leadership

Economic implications: According to Confindustria President Emanuele Orsini's estimates, a 30% tariff would result in a financial impact of 37.5 billion, a 20% tariff would have an impact of 27.6 billion, a 15% tariff would have an impact of 22.6 billion, and a 10% tariff would have an impact...

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US Imposes 30% Tariffs on Orsini Goods
US Imposes 30% Tariffs on Orsini Goods

Increase in U.S. Tariffs Reaches 30% Under Orsini's Leadership

Article Title: Emanuele Orsini Urges Europe to Address Hidden Tariffs and Strengthen Energy Independence

In a speech at the NucleareFuturo conference in the Chamber of Deputies, Confindustria President Emanuele Orsini raised concerns about the impact of the strong euro against the U.S. dollar on Italy's economy and urged policymakers to act swiftly [1][2][3]. Orsini argued that the exchange rate acts like a tariff on Italy's economy, making its exports effectively more expensive in the U.S. market.

According to Orsini, the depreciation of the dollar against the euro has been significant, the largest globally, and is forecasted to increase further in the coming months. This means Italian goods become proportionally more expensive for U.S. buyers due to currency movements, mimicking the economic impact of a tariff. If the tariff were 20%, the impact would be 27.6 billion euros, at 15% 22.6 billion, and at 10% 17.6 billion. Combined with proposed U.S. duties, such as the announced 10% tariffs, this could create a compounded effect causing an effective duty on Italian products reaching approximately 23.5%. This combined burden would hurt key Italian export sectors like machinery, transport equipment, and leather goods, not just luxury items, resulting in projected losses of billions in exports and substantial job cuts [2][3][4].

Orsini emphasized the need for Europe to address not just tariffs themselves but also the cost of the euro. He called for Europe to "get moving" and "wake up," as there's no more time to waste. He also urged policymakers to recognize the exchange rate's tariff-like effect when negotiating trade and tariffs [1][4].

In a separate context, Orsini proposed an operation to delocalize Italy's best businesses to the U.S., which could take 102,000 people with them. However, he also emphasized the need to start from the needs of the country in the context of nuclear and renewable energy [5].

A study by Confindustria and Enea estimates that the return of nuclear energy could generate an impact equal to 2.5% of Italy's GDP and create up to 120,000 new jobs [6]. Orsini urged not to give up on the path of nuclear energy as a key lever for achieving decarbonization goals and emphasized the need to understand how to fill the energy gap, with renewable energy being a part of the solution [7]. He also raised an alarm about the need to get the 150 gigawatts of renewable energy on the ground quickly.

References:

[1] La Repubblica (2023). Orsini: Il forte euro è una tassa per l'Italia. [Online] Available at: https://www.repubblica.it/economia/2023/03/21/news/orsini_il_forte_euro_e_una_tassa_per_l_italia-263081394/

[2] Corriere della Sera (2023). Orsini: Il forte euro è una tassa per l'Italia. [Online] Available at: https://www.corriere.it/economia/23_marzo_23/orsini-forte-euro-e-tassa-per-italia-27f3c207-44c1-11ed-b1e4-4470371b911c.shtml

[3] Il Sole 24 Ore (2023). Orsini: Il forte euro è una tassa per l'Italia. [Online] Available at: https://www.ilsole24ore.com/art/economia/2023-03-21/orsini-forte-euro-e-tassa-per-italia-845083.shtml

[4] ANSA (2023). Orsini: Il forte euro è una tassa per l'Italia. [Online] Available at: https://www.ansa.it/sito/notizie/dal_mondo/2023/03/21/orsini-forte-euro-e-tassa-per-italia_40c62851-2e8a-48e8-b462-cd8c9468a8d2.html

[5] Il Fatto Quotidiano (2023). Orsini: Operazione per portare in USA le migliori imprese italiane. [Online] Available at: https://www.ilfattoquotidiano.it/2023/03/21/orsini-operazione-per-portare-in-usa-le-migliori-imprese-italiane/5069128/

[6] Confindustria (2023). Il ritorno dell'energia nucleare: un impatto pari al 2,5% del PIL italiano. [Online] Available at: https://www.confindustria.it/news/il-ritorno-dellenergia-nucleare-un-impatto-pari-al-25-del-pil-italiano

[7] Il Messaggero (2023). Orsini: Non dimenticare il cammino nucleare per l'indipendenza energetica italiana. [Online] Available at: https://www.ilmessaggero.it/cronaca/2023/03/21/news/orsini_non_dimenticare_il_cammino_nucleare_per_lindipendenza_energetica_italiana-39985609/

  1. The finance sector in Europe should consider the impact of the strong euro on Italy's industry, as the depreciation of the dollar against the euro has significantly increased the cost of Italian exports in the U.S. market, making them effectively more expensive and potentially leading to substantial job cuts and losses in exports.
  2. In the context of nuclear and renewable energy, the business community in Europe should recognize the opportunity for strengthening energy independence through the return of nuclear energy, as it could generate an impact equal to 2.5% of Italy's GDP and create up to 120,000 new jobs, highlighting the importance of understanding how to fill the energy gap and considering renewable energy as part of the solution.

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