Italy's main business lobby Confindustria on Wednesday cut its economic growth forecast for the country, warning that looming U.S. trade tariffs risked further worsening the outlook. U.S. President Donald Trump was expected to unveil a comprehensive tariff plan later on Wednesday, amid fears among businesses, consumers and investors worldwide about an intensifying trade war.

Confindustria said it expected Italy's gross domestic product (GDP) to expand by 0.6% this year, just half the government's official 1.2% forecast and down from the 0.9% the association had estimated in October. It predicted that GDP growth would pick up to 1% in 2026. The euro zone's third largest economy expanded by a modest 0.7% in both 2024 and 2023.