Enrico Letta, the former Prime Minister of Italy and current Dean at the IE School of Politics, has sharply criticized U.S. President Donald Trump’s new trade tariffs, labeling them as “pure madness” and “incomprehensible.” Speaking during an interview with Finance Newso’s Silvia Amaro at the Ambrosetti Forum by Lake Como on Friday, Letta expressed concern that Trump is capitalizing on divisions within the European Union and emphasized the importance of unity among EU member states.
Letta cautioned that the broad U.S. tariffs represent a “crazy frontal attack on the world,” which will adversely affect both American citizens and those in countries targeted by the tariffs. While he acknowledged the potential need for European retaliatory measures to safeguard the economy, he warned against isolating Europe in response to Trump’s actions, stating that such a reaction would be detrimental.
Finance Newso has reached out to the White House for a statement regarding Letta’s remarks and is currently awaiting a response.
His views reflect a growing concern among European officials following the implementation of 20% tariffs on imports to the United States. European Commission President Ursula von der Leyen has indicated that the EU is gearing up to enact countermeasures if negotiations with the U.S. falter. Both France and Germany are advocating for a unified response, with German Economy Minister Robert Habeck asserting that Trump will yield to external pressure.
“This pressure needs to be exerted from Germany, from Europe in alliance with other nations, and it will reveal who is truly the stronger party in this standoff,” Habeck stated.
The imposition of tariffs is anticipated to place significant strain on European economic growth, potentially compelling local producers to reduce prices to maintain their export market shares. Deutsche Bank estimates that the tariffs could decrease euro-area GDP by approximately 0.4% to 0.8%, a revision from their earlier forecast of 0.3% to 0.4%. This impact is seen as broadly comparable to a phase of economic stagnation extending into mid-2025.
Despite the challenges posed by the tariffs, Deutsche Bank suggests that the growth forecast for the euro area, projected at +1.0%, could still be viable due to the initial economic boost from the defense and infrastructure spending initiated by Europe’s ReArm initiative.
