Italy is preparing to significantly reduce its 2025 economic growth forecast from 1.2% to 0.6%, according to a government source. The updated projection, which reflects growing concerns over US-imposed tariffs, is expected to be approved later today by Prime Minister Giorgia Meloni's cabinet as part of Italy's revised economic roadmap.

The move comes amid heightened trade tensions between Italy and the United States, with Prime Minister Meloni set to travel to Washington on April 17 for a direct meeting with US President Donald Trump. The agenda is expected to focus on the impact of the US tariffs on Italy's economic performance and bilateral trade relations.

Meloni has previously criticized the sweeping tariffs introduced by the Trump administration, arguing that they place undue pressure on Italy’s export-driven sectors. Her upcoming visit aims to open a dialogue with the US leadership in hopes of alleviating the economic strain caused by the new trade measures.

In a parallel development, the Bank of Italy also revised its own growth estimates. The central bank now projects a 0.5% GDP growth for 2025, marking a downward adjustment in line with the government’s figures. It also noted changes in forecasts for 2026 and 2027, signaling a cautious long-term economic outlook.

The lowered projections underscore the challenges facing Italy’s economy, particularly in light of external trade policies and global market volatility. Economists warn that continued tariff pressure could further erode business confidence and investment momentum in key industries, including manufacturing and agriculture.

While the government has yet to make a formal announcement, the revisions are expected to shape upcoming fiscal policy decisions and inform Italy’s position in EU economic discussions. The outcome of Meloni’s meeting with Trump will likely play a crucial role in determining Italy’s trade strategy going forward.