EU Leaders Warn U.S. Tariffs Risk Growth; Italy Flags 0.5% GDP Hit

German Chancellor Friedrich Merz said the United States’ tariffs represent a “significant burden” for Germany and cautioned that any European counter-measures would equally run against U.S. interests. German Finance Minister Lars Klingbeil echoed those concerns, warning that the emerging EU-US trade accord could damage the German economy. Italy’s Economy Minister Giancarlo Giorgetti said the draft EU-US tariff deal would have a “significant impact” on both the Italian and wider European economies, estimating it could shave as much as 0.5% from Italy’s gross domestic product in 2026. Even so, Giorgetti maintained that the government’s 0.6% growth target for 2025 remains within reach despite weaker-than-expected data from statistics agency ISTAT. Giorgetti added that Rome is putting forward proposals to Washington on a digital services, or web, tax in an effort to avoid U.S. retaliatory measures. The remarks underscore growing unease among major euro-area capitals over the economic fallout of the U.S. tariff regime and the direction of trans-Atlantic trade talks.