Italy's PM Meloni says EU must be pragmatic with Trump to avoid US trade tensions

Italian Prime Minister Giorgia Meloni said on Tuesday that the EU must take a pragmatic approach with the incoming Trump administration in order to head off a trade war between Europe and the US.

The EU has been bracing for trade problems ever since the recently re-elected Trump vowed to impose tariffs of 10% to 20% on imports from all foreign countries - apart from China, which will face a 60% tariff if his proposals become a reality.

Italy's right-wing leader Meloni appears to have forged a friendship with Trump in recent months, with the pair posing for photos and praising each other, which could make her one of his closest EU allies, especially given the political crises in Germany and France.

"It is essential to maintain a pragmatic, constructive and open approach towards the new Trump administration, using areas of potential and fruitful EU-US cooperation and trying to prevent commercial disputes that wouldn't benefit anyone," Meloni told Italy's parliament in a speech ahead of the European Council summit in Brussels on Thursday.

Trump warned during his election campaign that the EU would "pay a big price" for supposedly not buying enough US exports, including American cars, considering that the 27-country bloc "sells millions and millions of cars in the United States".

During his previous term as president, Trump described Europe as a "foe" of the US.

Data from the US Census Bureau shows that the EU exported $576.3bn (€549.2bn) worth of goods to the US in 2023 - representing about 20% of the bloc's total exports - for a goods trade surplus of $208.6bn (€198.8bn).

Last month, the EU's ambassador to the US, Jovita Neliupšienė, said that the bloc was ready to respond to any renewed trade disputes with the US that could arise under Trump's incoming administration. However, she did not specify any possible measures.

Regarding Trump's tariff threats, Meloni has previously said that the EU should focus on setting its own affairs in order rather than worrying about the US.

"Don't ask what the US can do for you, ask what Europe should do for itself," Meloni said ahead of a EU leaders' meeting in Budapest last month, paraphrasing Trump's presidential predecessor John F. Kennedy.

"Europe must find a balance," she added. "I'm thinking of the issues of competitiveness, tariffs."

Meloni and Trump dined together earlier this month at an event organised by French President Emmanuel Macron to mark the reopening of the Notre Dame Cathedral in Paris.

Trump reportedly described Meloni as a "real live wire" and later said he was ready to work with her, calling her "a fantastic leader and person". In a post on X last week, Meloni shared a video of Trump's comments and wrote: "Thanks (to Trump) for the kind words."