Italian Prime Minister Giorgia Meloni has called for a balanced response to the intensifying tariff row between the United States and the European Union, urging the preservation of transatlantic cohesion against heightened economic and defense tensions.

Addressing a gathering of Italy’s centrist opposition Azione (Action) party on Saturday, Meloni highlighted the need to emphasize diplomacy over revenge. “There are tariff differences, but for this reason, we should not act spontaneously but in a thoughtful manner,” she said.

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Her remarks come after US President Donald Trump’s imposition of high tariffs, including a 25% tariff on auto imports and a 200% tariff on champagne, wine, and other EU alcoholic drinks. The action has raised alarm in Europe, especially in Italy, where more than 10% of exports are destined for the US, with machinery and parts accounting for half of the exports.

Italian business association Confindustria head Emanuele Orsini threatened that a trade war would be a “huge problem for Italy” and demanded EU negotiations to avoid further escalation.

Apart from trade, the differences between Washington and Brussels have also been running deeper in terms of defense policy. Trump’s apparent indulgence in Moscow’s war with Ukraine has left EU leaders troubled, with this being one reason they have initiated debate on expanding Europe’s defense capacities. Meloni has gingerly supported efforts to expand defense cooperation in Europe while dismissing dispatching troops to Ukraine as part of any forthcoming peace enforcement campaign.

Meloni, whose Brothers of Italy party is eurosceptic, reaffirmed Italy’s close relationship with the US just recently, referring to it as “our first ally” in an interview with the Financial Times. Her opposition leader, Elly Schlein, accused her of too closely following Trump’s administration and warned that Italy could become Washington’s “Trojan horse” in the EU.