Donald Trump’s return to the White House in 2025 has ushered in an aggressive revival of “America First” trade policies. His administration swiftly unveiled a sweeping set of new tariffs on imports, framed as “reciprocal” tariffs aimed at countries perceived to have trade advantages over the US.

The shock announcement – dubbed by some as “Liberation Day” – has sent ripples through global markets and raised the specter of a new trade war. Allies and rivals alike were stunned by tariffs ranging from 10% to 54% on various countries’ goods. Major US trading partners in Europe and Asia face 20–26% levies, while China is hit with an astonishing 54% duty. These measures mark a sharp escalation in protectionism, disrupting established supply chains and threatening to undercut economic growth in the US and abroad.

European leaders have warned that Trump’s tariff offensive is a “major blow” to the world economy that will fuel inflation, raise consumer prices, and sow chaos in global trade. This brief assesses the implications of Trump’s tariff policy for the European Union – with a focus on Italy – and its industrial supply chains and discusses potential strategic responses.