2 April marked a decisive turning point for all companies wishing to export to the US: President Trump officially announced the imposition of tariffs of 10% on all countries, with even harsher penalties for 60 nations considered 'worst offenders', including China and the European Union. The news immediately generated a lot of tension in global markets, presenting Italian companies with new and complex business challenges.
Trump thus fulfilled one of his main election promises, raising US tariffs to the highest levels on record since the end of the 19th century. The US administration has justified these measures as a necessary correction in response to alleged unfair trade barriers imposed by other countries, based on the belief that the trade deficit represents an injustice that must be corrected.
After intensive diplomatic negotiations and several rounds of international bargaining, the entry into force of the duties was postponed to 7 August, one week later than originally planned. This postponement allowed for further talks between the parties, but did not remove the concerns of the business community.
Now that the decisions have been made and the timelines defined, the crucial questions remain: which countries will suffer the most? What concrete impact will Italy have? And what effects will this have on the global economic fabric?
European companies are currently considering how todevolve their commercial strategies towards the United Statesconsidering the evolution of the tariff framework and the resulting opportunities.
The Trump administration's approach is characterised by its flexibility: some trading partners have already established specific agreements, others operate under standard tariffs, while for several nations trade dialogues are actively continuing. Most countries are currently subject to the 10% basic tariff.
This diversification of trade policies is creating an evolving landscape for trade operators. As far as the European Union is concerned, the agreement in principle provides for tariffs to 15%but sectoral details remain to be worked out. Some manufacturing sectors - such as pharmaceuticals, automotive and components - are still under negotiation to determine the specific application of the new rules.
Companies are therefore using this transition period to explore different strategic options and evaluate the best ways to maintain their competitiveness in the US market. Many companies see this phase as an opportunity to review and optimise their international business approaches.
The analysis of the effects of the new US tariff policies reveals a articulated frameworkwhere the intensity of the impact is directly related to export volumes to the US. The main stakeholders appear to be the European Union, followed by Mexico, China, Canada, Japan and South Korea.
The European situation presents some interesting peculiarities. Despite belonging to the same trade bloc, individual Member States have different tariff exposures depending on the composition of their export baskets. Ireland, specialising mainly in the pharmaceutical sector which is currently duty-free, has a different risk profile than to Italy, which with an average exposure of 9% reflects the diversification of its exports. In contrast, Slovakia, which is focused on the automotive sector, is subject to tariffs of 25% for this specific segment.
The Craftsmen and Small Businesses Association of Mestre (CGIA) has drawn up a comprehensive analysis that considers both the direct effects of protectionist measures, as well as the indirect ones, including the contraction of company margins, employment-related social costs, possible production relocations, and the currency effects of the dollar against the euro.
Despite the prospect of duties, Italy maintains a solid export vocation to the US market. Bank of Italy data show that the 92% of Italian products destined for the United States is in the high and medium-high end of the market.
This qualitative characteristic of the Made in Italy could represent an element of natural protectionAmerican consumers and high-income businesses could maintain their purchasing preferences even in the presence of price increases due to customs barriers. Furthermore, Italian companies could absorb part of the impact through an adjustment of their operating margins.
The legal aspect of tariff measures remains a important element in the American institutional debate. In fact, the US judiciary is examining the regulatory basis for the new trade taxes.
Last May, the New York Court of International Trade raised questions of legitimacy with regard to duties, challenging the use of several decades old legislation that grants the president exceptional economic powers in situations of national emergency. According to the court's interpretation, current conditions would not constitute such a state of emergency.
The federal administration reacted to this ruling by filing an appeal with the Federal Court of Appeal, thus initiating a judicial process that could be protracted. Observers of the American legal system consider it highly likely that the matter will eventually reach the Supreme Court for a final decision.
This development introduces a further element of variability in the international trade landscape, as the outcome of the court case could influence the application and duration of the tariff measures currently in force. Companies and traders are closely monitoring the development of this legal case as part of its strategic planning.
In the context of an interview entitled 'Where exports pay no duty'conducted by Motore Italia and published in Milano Finanza, the CEO of Octagona Alessandro Fichera, had already examined in detail the strategies that Italian companies can adopt to effectively tackle US duties and better compete in the global market. In this sense, he highlighted the crucial importance for Italian SMEs to develop a strong international manufacturing presence.
"The manufacturing footprint is something that companies need to prepare for as early as possible," said Fichera. This implies a thorough assessment to identify the most suitable markets in which to invest. L'artificial intelligence becomes an essential tool for rapidly analysing large amounts of data and making informed decisions.
In support of this, Bonfiglioli Consulting, of which Octagona is the Business Unit dedicated to the internationalisation of companies, has developed an advanced tool that allows markets to be mapped and potential criticalities, such as customs blocks or geopolitical tensions. This tool enables companies to effectively anticipate and manage these challenges, ensuring a proactive approach essential to quickly adapt to global market changes and maintain a competitive advantage.
Alessandro Fichera warned that lack of planning and ignoring cultural differences are common mistakes among SMEs aiming to undertake internationalisation paths. "Today, numbers play a crucial role," he emphasised, highlighting the importance of carefully analysing suppliers and setting up alert systems to face possible market challenges. Italian companies must adopt targeted strategies and focus on aggregation to compete in complex and dynamic markets, where competitors are often much larger.
'We need to attract foreign resources to Italy to broaden our cultural capacity and vision,' added the Octagona CEO. This approach not only strengthens the competitiveness of companies, but also broadens their global perspective, allowing them to face challenges with a broader and more integrated vision, improving resilience.
Regarding the countries to be monitored, in a previous interview with Milano Finanza, Fichera had already indicated Mexico as a very promising market, especially for manufacturing investments. In Monterrey, the local government is attracting foreign investment with significant incentives.
It is also important to keep an eye on United Arab Emirates, Saudi Arabia and, in particular, theIndiadescribed as 'a market with impressive growth dynamics, but complex, requiring a careful cultural approach'. India, in fact, invites production with western technologies, but using local labour.
In an environment where exporting to the US has become more complex due to the new trade policies and duties imposed by the Trump administration, and further complicated by the Euro-dollar exchange rate fluctuations, the Italian economy faces significant challenges that can also turn into significant opportunities.
This situation requires a careful analysis of US market penetration strategies, considering not only duties but also logistics costs and increasingly fierce competition.
While the geopolitical scenario is pending redefinition and new agreements could be established, direct investment in the United Statesthrough the creation of subsidiaries or joint ventures, can be an effective strategy to mitigate the impact of tariffs and ensure greater long-term competitiveness. This approach also allows access to local financing and the benefit of government incentives, depending on the state chosen for establishment.
We have already discussed how open a company in the United States can facilitate business relations with local companies, which often prefer to interact with companies under US jurisdiction, thus simplifying administrative procedures and speeding up response times.
Opening a branch in the United States is generally smooth thanks to a efficient bureaucracyalthough it requires a thorough knowledge of local regulations. In addition, it is essential for companies to carefully evaluate the type of company to be set up, considering factors such as hiring employees, taxation of profits and risk management. It is not necessary to have a visa, to be a resident, to set up a board of directors, to have an American partner or to pay a mandatory minimum capital. Choosing the most suitable legal structure is crucial to optimise tax management and minimise risks.
In the United States, the main corporate forms are Sole Proprietorship, Corporation and LLC. The optimal choice depends on the specific needs of the business. Sole Proprietorship is simple, ideal for small businesses; Corporation offers legal protection but involves double taxation; LLC combines tax advantages and limited liability. Taxation on profits is 21%, with no fixed upfront costs, but requires tax planning. Registration requires choice of state, name verification, a registered agent, incorporation documents, an EIN, a bank account and compliance with regulations. The process, although complex, can be fast and smooth if supported by professionals.
The global context poses increasingly complex challenges for Italian companies wishing to export to the US. It is precisely in this complexity, however, great opportunities are also concealed. It is essential to adopt a strategic approach combining legal and tax expertise, local knowledge and advanced analysis tools.
Into this scenario comes a new tool designed precisely to facilitate the choices of Italian companies: the Smart Country Guiderecently presented by the Consulate General of Italy in Los Angeles and the Consulate General of Italy in San Francisco. The guide provides an in-depth overview of the 11 states of the American West Coast, highlighting sectoral opportunities, regulatory barriers, entry strategies and entrepreneurial success stories. A veritable operating manual, full of up-to-date data and interactive resources, which helps to navigate the US market with greater awareness and long-term vision.
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For those who want to export or invest in the USconsulting the Guide is the first step towards building a solid, sustainable and competitive presence.
👉 Discover now the [Smart Country Guide] and start planning your US entry strategy with the right support.
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