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Meloni's Balancing Act: Can Italy Keep the EU United Amid Rising U.S. Trade Tensions?

Meloni's Balancing Act: Can Italy Keep the EU United Amid Rising U.S. Trade Tensions?

Saturday, May 10, 2025

By Engy Arafa

As trade tensions between the European Union and the United States resurface, Italian Prime Minister Giorgia Meloni is stepping into the spotlight as a potential mediator. Her scheduled visit to Washington for talks with President Donald Trump has drawn international attention—not just for its bilateral significance, but for what it could mean for the future of EU unity and transatlantic diplomacy.

Tariffs, Trade Wars, and Transatlantic Tensions

At the heart of the dispute is the reinstatement of steep tariffs by the U.S. on European exports, including steel, aluminum, and automobiles. Trump’s renewed “America First” stance has rattled European markets, with leaders in Brussels concerned about the possibility of a broader trade war. Italy, which enjoys a €40 billion trade surplus with the U.S., finds itself both vulnerable and uniquely positioned to play a leadership role.

“Europe must speak with one voice,” Meloni said in a recent press conference. “But we also have to be pragmatic and engage where we can find common ground.”

While some EU leaders, particularly in France and Germany, worry that Meloni’s individual diplomacy could undermine the bloc’s collective strategy, others view her relationship with Trump as a potential asset. Meloni was one of the few European leaders invited to Trump’s January inauguration, and she’s maintained cordial ties with his administration.

Beyond Trade: The Shadow of Security and Defense

To avoid fracturing the EU’s position, Meloni has coordinated with European Commission President Ursula von der Leyen ahead of her visit. The goal, according to insiders, is to “explore alignment without overstepping.”

Beyond trade, security and defense are also high on the agenda. The EU is pushing forward with “Readiness 2030,” a plan to revamp its military and strategic infrastructure with up to €800 billion in investment. The initiative is partly motivated by fears that a Trump-led U.S. might reduce its military support for Ukraine, leaving Europe more exposed.

Meanwhile, Meloni is advancing a bold domestic agenda. She has proposed constitutional reforms that would allow Italians to directly elect their prime minister—a move she claims would strengthen democratic legitimacy. She’s also championing tax cuts for the middle class, building on earlier reductions for low-income earners.

Why This Matters to More Than Just Politicians

For students and researchers, these developments are more than geopolitical headlines. Transatlantic relations shape everything from university partnerships and academic funding to post-study employment prospects and visa policies. If Italy can successfully mediate a more stable EU-U.S. relationship, the ripple effects could be felt in lecture halls and research labs across Europe.

As Meloni prepares to land in Washington, the stakes could not be higher. Her ability to balance national interests, European unity, and a volatile White House will not only define her leadership— but could also shape the EU’s global standing for years to come.