Ettore Santucci has lived and worked in Boston for forty years, where he leads the firm’s Italy Practice. With a career built between Italy and the United States, he has seen first-hand the evolution-and today’s tension-of global economic relations. He explains why businesses must prepare for an “armed truce” in the tariff war and how Italy can still play a leading role in the global economy, starting with ingenuity, human capital and smart investments.
Attorney Santucci, how would you describe the current scenario of international trade relations?
“Perhaps this dialogue could have the title ‘war and peace.’ The reality is that even after the current acute phase of the tariff war, it is difficult to foresee a return to the pre-2025 status quo. Tariffs have always existed, in different forms. Today we are in the midst of a trade war, and the most realistic scenario, for the foreseeable future, is an armed truce. Businesses must learn-or in some cases regret-how to operate in an environment where trade is only partially free.”
What tools can businesses use to navigate through this uncertain phase?
“We need practical tools, which already exist, to achieve three basic goals. First: eliminate or at least reduce uncertainty, which in itself is a cost. Second: contain litigation, which will inevitably emerge as a result of the new rules and prices. Third: preserve the intrinsic value of international trade. Over the past 75 years, free trade has reduced wars and increased prosperity. Going back would be dangerous.”
You said that profit is the oil in the engines of the economy. What do you mean by that?
“There is an important reason why oil is critical in engines: when it is missing, the engine seizes. Profit is the oil. Without profit, the system crashes. Businesses need to be able to operate, to create value, to trade. And do it in a regulated but fluid environment.”
Does Italy still have a competitive advantage beyond the traditional Made in Italy sectors?
“Absolutely. Italy exports excellence not only in Food, Fashion and Ferrari. I am thinking for example of machine tools, electronic equipment for photovoltaics. These are high value-added sectors, where Italian engineering intelligence makes the difference. In addition, thanks to tools such as the Free Ports in the United States, Italian companies can create added value directly on American soil, also optimizing the impact of duties.”
And in this context, is on-shoring really a realistic solution for the United States?
“Little or nothing. There is talk of bringing steel manufacturing back to America, but meanwhile we just sold US Steel. Rather, there is a real opportunity in high-innovation sectors. I’m thinking, for example, of pharmaceutical manufacturing. The U.S. does research and development, but then they produce elsewhere. Today, Italians in Italy and America are developing technologies to automate the production of active ingredients, a kind of “pharmaceutical robotization” made in Italy. This is useful, sustainable, and strategic on-shoring.”
Can capital still play a central role in the revitalization of the Italian production system?
“Of course. Today the engine of globalization is not only multinationals, but funds: venture capital, private equity, dynamic and geographically mobile capital. Italians, in this sector, have a significant presence. But the Italian system still has too many barriers. We would need an industrial policy that facilitates and regulates the access of foreign capital. Not to colonize Italy, but to make it grow.”
You have lived in the United States for 40 years. Is the American dream still alive?
“I always say, everything I have between my right ear and my left ear, Italy gave me. Everything else, America. When I arrived, it was really the shining city on the hill. In recent years, some of that light has dimmed. Today, paradoxically, the spirit of openness and opportunity can be found in Europe. But we do not have to choose: we must continue to exchange ideas, skills, experiences. Globalization, whatever people say, continues to do good. Exchange – commercial, intellectual, cultural – is always preferable to conflict.”
The article Global economy and Italy: we talk about it with Ettore Santucci comes from TheNewyorker.
