Italy's PM Meloni warns against 'trade war within the West'
"A trade war within the West would weaken us all in the face of the global challenges we are confronting together," Meloni said in a statement released by her office.
"Europe has the economic and financial strength to assert its position and reach a fair and sensible agreement," she said.
"Italy will do its part. As always," she added, as the EU holds off on a response in the hopes of reaching an agreement.
Trump announced Saturday that products imported into the United States from the European Union and Mexico would be subject to 30 percent tariffs starting August 1.
Since then, Italian opposition parties have criticized Meloni and her far-right party Brothers of Italy, while opposition Five Star Movement leader Giuseppe Conte accusing her of "bowing her head" to Washington's threats.
European Commission President Ursula von der Leyen stated that Brussels would not retaliate against US tariffs on steel and aluminium for now, hoping to secure a deal to avoid broader 30-percent levy on all its exported products.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
33 minutes ago
- Economic Times
Rogue bots? AI firms must pay up
When Elon Musk's xAI was forced to apologise this week after its Grok chatbot spewed antisemitic content and white nationalist talking points, the response felt depressingly familiar: suspend the service, issue an apology and promise to do better. Rinse and isn't the first time we've seen this playbook. Microsoft's Tay chatbot disaster in 2016 followed a similar pattern. The fact that we're here again, nearly a decade later, suggests the AI industry has learnt remarkably little from its mistakes. But the world is no longer willing to accept 'sorry' as sufficient. This is because AI has become a force multiplier for content generation and dissemination, and the time-to-impact has shrunk. Thus, liability and punitive actions are being discussed. The Grok incident revealed a troubling aspect of how AI companies approach accountability. According to xAI, the problematic behaviour emerged after they tweaked their system to allow more 'politically incorrect' responses - a decision that seems reckless. When the inevitable happened, they blamed deprecated code that should have been removed. If you're building systems capable of reaching millions of users, shouldn't you know what code is running in production?The real problem isn't technical - it's philosophical. Too many AI companies treat bias and harmful content as unfortunate side effects to be addressed after deployment, rather than fundamental risks to be prevented beforehand. This reactive approach worked when the stakes were lower, but AI systems now operate at unprecedented scale and influence. When a chatbot generates hate speech, it's not embarrassing - it's dangerous, legitimising and amplifying extremist ideologies to vast legal landscape is shifting rapidly, and AI companies ignoring these changes do so at their peril. The EU's AI Act, which came into force in February, represents a shift from reactive regulation to proactive governance. Companies can no longer apologise their way out of AI failures - they must demonstrate they've implemented robust safeguards before AB 316, introduced last January, takes an even more direct approach by prohibiting the 'the AI did it' defence in civil cases. This legislation recognises what should be obvious: companies that develop and deploy AI systems bear responsibility for their outputs, regardless of whether those outputs were 'intended'.India's approach may prove more punitive than the EU's regulatory framework and more immediate than the US litigation-based system, focusing on swift enforcement of existing criminal laws rather than waiting for new AI-specific legislation. India doesn't yet have AI-specific legislation, but if Grok's antisemitic incident had occurred with Indian users, then steps like immediate blocking of the AI service, a criminal case against xAI under IPC 153A, and a demand for content removal from the X platform would have been Grok incident may mark a turning point. Regulators worldwide are demanding proactive measures rather than reactive damage control, and courts are increasingly willing to hold companies directly liable for their systems' shift is long overdue. AI systems aren't just software - they're powerful tools that shape public discourse, influence decision-making and can cause real-world harm. The companies that build these systems must be held to higher standards than traditional software developers, with corresponding legal and ethical question facing the AI industry isn't whether to embrace this new reality - it's whether to do so voluntarily or have it imposed by regulators and courts. Companies that continue to rely on the old playbook of post-incident apologies will find themselves increasingly isolated in a world demanding AI industry's true maturity will show not in flashy demos or sky-high valuations, but in its commitment to safety over speed, rigour over shortcuts, and real accountability over empty apologies. In this game, 'sorry' won't cut it - only responsibility writer is a commentator ondigital policy issues (Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of Elevate your knowledge and leadership skills at a cost cheaper than your daily tea. Rumblings at the top of Ola Electric The hybrid vs. EV rivalry: Why Maruti and Mahindra pull in different directions. What's best? How Safexpress bootstrapped its way to build India's largest PTL Express business Zee promoters have a new challenge to navigate. And it's not about funding or Sebi probe. Newton vs. industry: Inside new norms that want your car to be more fuel-efficient Stock Radar: UltraTech Cements hit a fresh record high in July; what should investors do – book profits or buy the dip? F&O Radar | Deploy Bear Put Spread in Nifty to gain from index correction Weekly Top Picks: These stocks scored 10 on 10 on Stock Reports Plus
&w=3840&q=100)
Business Standard
44 minutes ago
- Business Standard
US inflation picks up in June as early tariff effects start to show
US consumer prices increased by the most in five months in June amid higher costs for some goods, suggesting tariffs were starting to have an impact on inflation and potentially keeping the Federal Reserve on the sidelines until September. Softening demand as consumers hunker down, however, is limiting price increases for services like airline fares and hotel and motel rooms, keeping underlying inflation muted for now. That trend, if sustained, could ease concerns of a broad-based rise in price pressures from tariffs. Nonetheless, economists generally expect the tariff-induced rise in inflation to become more evident in the July and August CPI reports, arguing that businesses were still selling merchandise accumulated before President Donald Trump announced sweeping import duties in April. They also noted that when Trump slapped tariffs on washing machines in 2018, it took several months for the duties to show up in the inflation data. Trump last week announced higher duties would come into effect on August 1 for imports from a range of countries, including Mexico, Japan, Canada and Brazil, and the European Union. "Inflation has begun to show the first signs of tariff pass-through," said Ellen Zentner, chief economic strategist at Morgan Stanley Wealth Management. "While services inflation continues to moderate, the acceleration in tariff-exposed goods in June is likely the first of greater price pressures to come. The Fed will want to hold steady as it awaits more data." The CPI increased 0.3per cent last month after edging up 0.1per cent in May, the Labor Department's Bureau of Labor Statistics said on Tuesday. That gain was the largest since January, and also reflected higher rental costs. Gasoline prices rebounded 1.0per cent after four straight monthly declines. Food prices rose 0.3per cent, matching the increase in May. Grocery store prices also advanced 0.3per cent, lifted by a 1.4per cent increase in the costs of nonalcoholic beverages and 2.2per cent jump in coffee prices, likely because of higher import duties. Fruits and vegetables cost 0.9per cent more while beef prices jumped 2.0per cent. But eggs were 7.4per cent cheaper as an avian flu outbreak abated. The cost of food consumed away from home rose 0.4per cent. In the 12 months through June, the CPI advanced 2.7per cent after rising 2.4per cent in May. Economists polled by Reuters had forecast the CPI would climb 0.3per cent and rise 2.6per cent on a year-over-year basis. The US central bank tracks Personal Consumption Expenditures (PCE) Price Index data for its 2per cent target. The Fed is expected to leave its benchmark overnight interest rate in the 4.25per cent-4.50per cent range at a policy meeting later this month. Minutes of the central bank's June 17-18 meeting, which were published last week, showed only "a couple" of officials said they felt rates could fall as soon as the July 29-30 meeting. CPI inflation readings came in on the low side in February through May, leading to demands by Trump for the Fed to lower borrowing costs. Trump persisted on Tuesday, writing on his Truth Social media platform, "Consumer Prices LOW. Bring down the Fed Rate, NOW!!" Stocks on Wall Street were mixed. The dollar rose against a basket of currencies, hitting a 15-week high versus the Japanese yen. US Treasury yields rose. TAME UNDERLYING INFLATION Excluding the volatile food and energy components, the CPI rose 0.2per cent in June. The so-called core CPI edged up 0.1per cent in the prior month. Despite the moderate gain, there were some solid increases in tariff-sensitive goods. Prices of household furnishings and supplies shot up 1.0per cent, the largest advance since January 2022, after climbing 0.3per cent in May. There was a record 4.2per cent jump in the prices of window and floor coverings and other linens. Prices for appliances surged 1.9per cent, the biggest rise since August 2020, while the cost of apparel rebounded 0.4per cent. Sporting goods prices accelerated 1.4per cent while toys vaulted 1.8per cent, the most since April 2021. But those rises were partially offset by a 0.7per cent decline in the cost of used cars and trucks. New motor vehicle prices fell 0.3per cent for a second straight month. Core goods prices rose 0.2per cent after being unchanged in May. Owners' equivalent rent of primary residence rose 0.3per cent, but the cost of hotel and motel rooms declined 3.6per cent. Airline fares dipped 0.1per cent. Healthcare costs increased 0.5per cent, driven by a 1.3per cent rise in dental services, which was the biggest gain in three years. There were also increases in hospital services and prescription medication. The costs of services excluding energy services increased 0.3per cent after gaining 0.2per cent in May. A slowing labor market, which is curbing wage growth, is also contributing to keeping services inflation in check. The overall core CPI inflation increased 2.9per cent in the 12 months through June after rising by 2.8per cent for three straight months. "If the recent tariffs threatened for August 1 go into effect, it will take a few months for that additional boost to inflation to be felt in goods prices and will keep the Fed on the sideline unless the labor market takes a sudden turn for the worse," said Ryan Sweet, chief US economist at Oxford Economics. Goldman Sachs is forecasting monthly core CPI inflation increases of between 0.3per cent-0.4per cent over the next few months, reflecting tariff-related increases in the prices of consumer electronics, autos and apparel. The investment bank expects limited near-term impact on core services inflation. Based on the CPI data, economists estimate core PCE increased 0.3per cent in June after rising 0.2per cent in May. Core PCE inflation was forecast to have advanced 2.8per cent on a year-over-year basis last month after climbing 2.7per cent in May. Those estimates could change after the release on Wednesday of producer price data, but some economists are hopeful that weakening demand will limit the scope for businesses to pass on tariffs to consumers. "With consumers becoming more cautious about spending and the job market starting to lose some momentum, the recent price increases are expected to be gradual rather than dramatic," said Sung Won Sohn, a finance and economics professor at Loyola Marymount University.
News18
an hour ago
- News18
Italian PM Urges EU To Avoid Trade War With US 'At All Costs' Amid Trump Tariff Talk
Last Updated: Her remarks came in response to Trump's announcement that goods imported into US from EU and Mexico would face 30% tariffs from Aug 1 Italian Prime Minister Giorgia Meloni on Tuesday said European nations must do everything possible to avoid a trade war with the United States 'at all cost" ahead of looming US tariffs. Speaking at a joint press briefing with Austrian Chancellor Christian Stocker in Rome, Meloni said she and Nehammer had discussed ongoing trade talks between the European Union and the US. 'We agree that we must, at all costs, avoid a trade war between the two sides of the Atlantic," Italian PM said. Italian Prime Minister Giorgia Meloni calls for a trade deal between the EU and the US before August to prevent a transatlantic 'trade war." #Meloni #US — Al Arabiya English (@AlArabiya_Eng) July 15, 2025 Meloni further stated that Italy and Austria would stay in close contact with the European Commission and continue working towards a 'mutually beneficial" agreement that should ideally be finalised before 1 August. 'We will continue together and in constant contact with the Commission, to work towards an agreement that can be mutually beneficial and must be concluded before next August 1," she added. A day earlier, Meloni had issued a statement warning that a trade conflict between Western allies would only weaken them in the face of shared global challenges. She said Europe had the economic and financial strength to assert its position and secure a fair deal. 'Italy will do its part, as always," she added. Her remarks came in response to US President Donald Trump's announcement on Saturday that goods imported into the US from the EU and Mexico would face 30% tariffs from 1 August. The move has sparked concern across European capitals and fuelled calls for a coordinated EU response. Meloni has come under fire at home from opposition parties. Giuseppe Conte, leader of the Five Star Movement and a former prime minister, accused her of 'bowing her head" to pressure from the US. Critics say her government is not doing enough to defend Italy's interests as trade tensions escalate. In Brussels today, EU trade ministers met to discuss the issue and described Trump's tariff plan as 'absolutely unacceptable". The bloc is now considering countermeasures, though officials say they remain hopeful of reaching an agreement with Washington. (With inputs from agencies) view comments Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
