The trade conflict between the EU and the US initially has no major impact on the Austrian economy. With whiskey or motorcycles, prices can rise slightly, said Harald Oberhofer trader economist. A serious inflation effect is not to be expected.
“Economic what is now known is not so relevant that it can cause noticeable inflation effects”. As reported, the US government has introduced EU steel and aluminum imports under President Donald Trump. In turn, the European Union has announced import tariffs for luxury and consumer goods from the US.
For Oberhofer this is mainly “symbolic products, no export magazines”. That is why the question arises whether the input rates would actually be passed on to consumers. In principle, the affectors were easy to avoid, the commercial economist said. In 2018 the EU was in a very similar situation, at that time the motorcycle manufacturer Harley Davidson had extra costs.
Still agreed possible?
The EU committee is open to discussions with the White House. If there is no agreement in the trade conflict, this “will put pressure on prices,” said Oberhofer. The consequences would be strong if the rates were expanded and, for example, sectors such as the car industry were recorded.
The American steel and aluminum import, which have been in force since Wednesday, mainly meet Voestalpine, and the upper Austrian aluminum group Amag in Austria. Voestalpine could largely damp the costs through its own production in the US, said Oberhofer. Rates for American companies increase priority prices, the competitive position can then deteriorate.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
