Italy warns of economic hit, including job losses and GDP shrinkage, if U.S. trade war escalates.

Italy urges dialogue with the U.S. to avoid a trade war, as new tariffs could cost Italy €12.4 billion in trade losses. The EU is preparing retaliatory tariffs on U.S. goods if negotiations fail. Italy's GDP could shrink by 0.36%, and up to 150,000 jobs might be lost. The tariffs threaten key sectors like agriculture and manufacturing, with cheese and wine among the goods at risk.