Venice, Italy – The economic fallout from recent tariffs appears to be disproportionately impacting the United States, according to Bank of Italy Governor Fabio Panetta. Speaking at the 32nd Assiom Forex Congress in Venice on Thursday, Panetta stated that, based on available estimates, the burden of these tariffs has largely fallen on the U.S. Economy. This assessment comes as global trade shows unexpected resilience despite increased geopolitical and commercial tensions.
Panetta’s remarks, reported by la Repubblica and Il Sole 24 Ore, suggest a re-evaluation of the commonly held belief that tariffs universally distribute costs across trading partners. Although foreign exporters have borne some of the cost, the bulk of the financial impact has been absorbed within the United States.
Global Trade Reorganization, Not Contraction
Despite the imposition of tariffs and rising geopolitical friction, Panetta highlighted a surprising trend: a reorganization of global trade, rather than a contraction. He noted that the global economy experienced growth of 3.3% in 2025, exceeding previous expectations, and international trade expanded by a robust 4%, double the anticipated rate according to the International Monetary Fund. This growth, he explained, was fueled in part by the dynamism of sectors linked to artificial intelligence, particularly the construction of data centers.
“The global trade has had a ‘reorganization, not a ‘contraction’,” Panetta stated, as reported by Corriere della Sera. He estimated that foreign exporters have shouldered approximately 10% of the tariff burden, with the remaining 90% impacting the U.S. Economy.
Italian Economy and the Role of AI
Panetta likewise addressed the Italian economic landscape, noting that it continues to grow in line with the European Union, but cautioned that structural issues remain. He emphasized the need for increased productivity and innovation, particularly in leveraging digital technologies. According to AGI, Panetta warned that a growth model based on expanding employment and contained wages is unsustainable, given the anticipated reduction in the working-age population.
The governor underscored the importance of investing in knowledge and human capital, positioning Italy to capitalize on the opportunities presented by artificial intelligence. He noted that the AI sector, specifically data center construction, has been a key driver of global economic activity.
The Future of Trade and Monetary Systems
Panetta’s address also touched upon the evolving international monetary system, highlighting the increasing fragmentation and the continued dominance of the U.S. Dollar. He advocated for the development of a digital euro to address these challenges and promote greater financial stability. The need for adaptation and realism in navigating the current geopolitical and commercial climate was a recurring theme throughout his speech.
The 32nd Assiom Forex Congress, held in Venice for the first time, provided a backdrop for Panetta’s reflections on the changing global economic order. The choice of Venice, a historical hub for trade and cultural exchange, was deliberate, serving as a reminder that openness and cooperation are essential for future prosperity. As Borsa Italiana reported, Panetta emphasized that cooperation, adherence to common rules, and a long-term perspective are crucial for governing the future.
Looking Ahead: Tariff Impacts and Policy Responses
The Bank of Italy Governor’s assessment of the tariff situation raises important questions about the effectiveness of trade policies and their unintended consequences. Further analysis will be needed to fully understand the long-term impacts on the U.S. And global economies. The next key event to watch will be the release of updated trade data from the U.S. Department of Commerce in March, which will provide a more current picture of the tariff landscape and its effects.
What are your thoughts on the impact of tariffs on the global economy? Share your comments below and join the conversation.
Worth a look
