Proposal requested for a worker protection directive regarding ionising radiation hazards by the Commission.
The recently signed agreement between the European Union and the United States has raised concerns about its potential impact on the Piedmontese economy. According to experts, the tariffs imposed on European, including Piedmontese, exports to the United States could cost the region up to one billion euros, about 0.7% of its GDP.
The transportation sector, which accounts for about 20% of regional exports to the US, has been hit hardest. With tariffs reducing from 27.5% to 15%, the sector has lost over a third of its value. While this may seem beneficial at first glance, the long-term effects could be detrimental.
A significant portion of the regional exports to the US, approximately 70%, has been absorbed by the provinces of Turin, Cuneo, and Novara. Turin, in particular, accounts for 50% of these exports. However, Cuneo has grown by 62.4%, while Novara has seen a significant reduction.
The wine trade, an important Piedmontese export, is expected to bear the brunt of the tariffs, with the combined effect of the tariff and unfavorable exchange rate shifts potentially raising the financial burden on producers by up to 30%. This strain is expected to lead to substantial economic losses not only for the producers themselves but also for the broader supply chains, which support thousands of jobs.
The tariffs could indirectly threaten employment levels, leading to job losses in Piedmont's wine and associated industries. This would directly reduce regional GDP contribution due to lowered export revenues and squeezed profits.
While some companies may absorb the higher tariffs temporarily, the overall consensus points to an eventual pass-through of costs either by reduced production volumes or increased prices, potentially slowing economic activity and growth in affected sectors.
The other manufactured products sector, which has seen significant growth (+23%), may be affected, particularly jewelry and costume jewelry, which account for 80% of the total value. The machinery and mechanical appliances sector, worth 1.7 billion a year, faces a tariff increase from 10% to 15% and may experience a slowdown.
The agro-food sector, which has grown from 460 million to 760 million between 2018 and 2024, will likely face a tariff increase from 10% to 15%. This sector, though, has shown substantial stability in provinces like Alessandria, Asti, Vercelli, and VB, where the quota in terms of exports to the US is below 1%.
Italian exports to the US have grown from 42.41 billion in 2018 to 67.76 billion in 2024, an increase of 53%. However, Piedmont's exports, valued at 4.24 billion, are now 5.05 billion, an increase of 19%, which is the lowest among Italy's leading economic regions.
Despite Piedmont seemingly being less penalized, the interconnected nature of the economy suggests that limiting oneself to one's backyard can be both perilous and misleading. The outcome of the avoided trade war and 30% tariffs is favorable for Piedmont's transportation sector, but the region's other sectors may face challenges.
In summary, the US-EU trade tariffs could lead to a decline in export volumes, increased financial burdens, job losses, and negative GDP impact. The wine trade, transportation sector, and other manufactured products sectors are particularly at risk. Expert warnings urge negotiators to exclude wine from tariffs to preserve economic value and jobs supported by transatlantic trade.
The Finance sector could witness increased burdens for Piedmontese wine producers, potentially escalating by 30% due to tariffs and unfavorable exchange rate shifts.
The potential job losses in Piedmont's wine and associated industries, arising from the tariffs, could indirectly decrease the region's overall GDP contribution.
