From his studio in Boston, where he lives and works, Francesco Rizzo Marullo closely follows developments in U.S. economic policies, and in particular the long shadow of U.S. tariffs announced by Donald Trump last April 2, then frozen but ready to be triggered if a new agreement is not reached by July 9.
Attorney Marullo, what is the current scenario in this context of uncertainty?We are in a total suspension phase. The duties announced by Trump last April 2, with that famous chart that went around the world, are currently frozen. However, if no agreement is reached by July 9, they will be reintroduced. It is crucial to be ready.
How could this situation be addressed?I hope we can contain the impact with a generalized duty of 10 percent and no higher. Also because that much-discussed table has a structural error. The International Chamber of Commerce has rightly criticized not only the simplistic mathematical method adopted by the White House, but above all the partiality of the formula: it considers only one aspect of the problem, the commodity aspect, in the trade relationship between the United States and the rest of the world, but it does not address the services relationship.
And what does the trade balance between Italy and the United States look like today?At the commodity level, Italy has a significant surplus, almost 39 billion euros; we export far more goods to the United States than we import. However, as experts from the International Chamber of Commerce have noted, this imbalance is greatly reduced if services are also included. In that sector, the United States is a global leader: think big tech and digital services. Adding up goods and services, the balance almost tends to balance, greatly reducing the Italian surplus.
In your opinion, what is the real motivation behind the eventual reintroduction of tariffs?I think there is a rather simple need behind it: to make cash. Beyond the political motivations and international implications, the real goal is to raise resources. Trump has repeatedly announced his intention to restore the 2018 tax cuts, the so-called Tax Cuts and Jobs Act, a very broad tax reform that transformed the American system. To do so requires economic cover.
Made in Italy continues to have strong appeal in the United States. Is it still worthwhile to invest there?Absolutely. Our know-how remains a great competitive advantage. Italian companies should also consider producing directly in some areas of the United States. I am thinking, for example, of New Hampshire, where there is a strong demand in the naval sector thanks to the long manufacturing tradition linked to the U.S. Navy. In certain areas there are not only tax incentives, but also skilled labor and established technical skills. These are areas where it can really be worth investing.
From your experience, is the American dream still alive?The American dream has changed from what Hollywood has told us, but it is still based on one essential concept: opportunity. For those, like me, from Southern Italy, getting an opportunity was never a given. Here, however, there is a real meritocracy. You are given a chance: if you prove yourself, you grow and move on. If not, you are unceremoniously turned away. It is also an extremely competitive market: you can tell me you are the best journalist in the world, and I might even believe you and give you a chance. But if you don’t prove it in the field, the opportunity ends there, and room will be made for the next guy.
The article U.S. duties and unknowns: Francesco Rizzo Marullo’s view comes from TheNewyorker.
