Rising U.S. Tariffs Threaten Global Trade: Italian Foundries and European Supply Chains at Risk

Trade

USA: The doubling of U.S. steel and aluminum tariffs to 50% is expected to significantly impact global trade dynamics, especially for the U.S., which remains heavily dependent on foreign sources for raw aluminum. These increased tariffs may further slow casting exports to the U.S., while Europe is likely to see an influx of products from China and other countries displaced from the American market. This shift could disrupt European supply chains, particularly in the already struggling automotive sector. The Italian foundry industry, employing over 23,000 people and generating €6.6 billion (US$7.5 billion) in revenue, is among the hardest hit. Italian foundries serve a wide range of industries, including automotive, mechanical engineering, construction and urban design, aerospace, energy, plumbing and heating, household appliances, art and design, and various consumer goods. As key contributors to recycling and sustainable supply chains, foundries play a crucial role in the circular economy. Notably, in 2019, Italian foundries allocated 21% of their total investment to environmental impact reduction, leading to lower dust emissions and waste generated per tonne of castings produced. 

Source: Vipiu