President Donald Trump meets face to face on Thursday with a European leader for the first time since announcing his global tariffs policy earlier this month. The tariffs escalated the U.S. trade war with China, wrapped the stock market in uncertainty and led analysts and economist to forecast an increased risk of a recession.
Italian Prime Minister Giorgia Meloni had reportedly arrived in Washington, D.C., scheduled to meet with Trump at 12 p.m. ET Thursday. A right-wing politician who has trekked toward the center in office, Meloni has reportedly been in close contact with EU leadership.
The meeting is an early indicator for E.U. leaders, who are waiting to see whether Meloni can negotiate with Trump over the 10% "reciprocal" tariffs he levied on European imports. Any positive or negative news from the meeting could have an impact on global market trading.
Meloni will join Trump in an Oval Office sit-down in front of a group of reporters, according to Politico. The two leaders will also hold closed-door meetings and have a ceremonial lunch.
Stock Market: Meloni And Trump
Meloni, the leader of the right-wing populist Brothers of Italy party, has ties to Italy's far-right but has moved to the center since taking office in October 2022. News reports say Meloni is working closely with European Union partners. The Italian prime minister is also uniquely placed to negotiate with Trump, according to observers.
Time Magazine called Meloni Europe's "Trump whisperer" in an April 16 article. The Italian leader earned the nickname after she and Trump held a five-hour meeting at Mar-a-Lago in January. She is scheduled to host Vice President J.D. Vance in Rome on April 18.
She was the only European leader to attend Trump's inauguration, and the U.S. president has also called her a "fantastic woman" in the past. Meetings in the past between Meloni and Tesla Chief Executive Elon Musk have also suggested a good working relationship between the two.
In early April, Trump announced a 10% "reciprocal" tariff on all imported goods from the E.U., raising the total tariff against the region to 20%. The U.S. president has since reduced the duty to 10% for 90 days, allowing for negotiations to take place to try to find a trade deal.
In response, the E.U. halted its retaliatory 25% tariffs targeting U.S. exports.
European Commission President Ursula von der Leyen said last week that the E.U. wants "to give negotiations a chance."
Meloni Speaks Ahead Of Meeting
"We know we're going through a difficult period, let's see how it goes in the coming hours. I don't feel any pressure, as you can imagine, for my next two days, let's say," Meloni told a crowd of entrepreneurs and business leaders Tuesday night in Rome, France's wire service AFP reported.
"Surely, I am aware of what I represent and I am aware of what I am defending," Meloni added.
However, Italian newspapers on Wednesday wrote about the possibility that Meloni could end up in a similar situation as Ukrainian leader Volodymyr Zelenskyy, in which Trump and his Vice President JD Vance berated their guest in front of reporters.
The Italian press added that Meloni's visit could set up a meeting between Trump and Ursula von der Leyen.
Musk's Free-Trade Zone?
On April 5, Musk, speaking via video to Italy's co-ruling political party, said he would like to see a free-trade zone between North America and Europe.
"At the end of the day, I hope it's agreed that both Europe and the United States should move ideally, in my view, to a zero tariff situation, effectively creating a free-trade zone between Europe and North America," Musk said.
The Tesla chief, and close Trump adviser, added on April 5 that "if people wish to work in Europe or wish to work in North America, they should be allowed to do so, in my view."
Musk said that "has certainly been my advice to the president."
Trade War Status
The stock market sold off Wednesday, with Nvidia and other AI chipmakers plunging on new export controls that essentially halt all AI chip sales to China.
Meanwhile, Federal Reserve Chairman Jerome Powell said Trump tariffs may create a "challenging scenario" for policymakers.
Trump late on Wednesday said there has been "big progress" in Japan trade talks. Japan-U.S. negotiations are being closely watched around the world to see what deals the Trump will accept. A second round of talks should take place later this month.
Early Thursday, Trump said Fed chief Powell is always too late and wrong, and said his exit "cannot come fast enough." The remarks appeared to be a reaction to Powell's Wednesday comments about big Trump tariffs spurring higher inflation and weaker growth, and his view that the Fed can still await more "clarity."
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