25 percent rates for EU vehicles are bad news for industry. Excursions worth 2.8 billion euros are at risk for the United States. Burglaries with VW and Co. Also have consequences for numerous Austrian suppliers.
US President Trump ruin the world economy again with his customs announcements. 25 percent on cars and car parts of the EU should apply on 2 April. The United States currently produces 60 percent of its vehicles in their own country, the rest is imported. In 2024, 820,000 vehicles were delivered from the EU for 38 billion euros to the States, half of Germany.
North -America is an extremely important market for the German car economy. Around every third Porsche and every sixth BMW were sold there last year. VW, Audi and Mercedes have deployed approximately ten to 15 percent of their vehicles in the United States. German producers have also settled in the US, as well as in Mexico and Canada, but there are too high rates for export.
Exports in billions of accounts are now at stake
The fact is: with the German car industry, Austria also hangs in the middle of the customs flict, directly and indirectly. The domestic supply industry is closely intertwined with the neighboring country. If fewer cars are produced because of the rates, Austrian companies sell fewer components. “In addition, Austria was exported in the vehicle sector by 2.8 billion euros directly to the United States in 2024, which may be influenced by the rates,” says Igor Sekardi, an expert at the Industrial Association. Fixed samples and aluminum rates also focus on a volume of a billion euros.
In general, Austria is caught the wrong foot with the hard customs policy of the American president. While exports fell by around five percent in 2024, exports to the United States rose by more than ten percent. A tightening of the trade conflict is therefore also bad for the domestic economy.
“Exports to the US kept us on for the last time,” emphasizes Sekardi. A major problem for the economy is also the enormous uncertainty and the “trade policy chaos,” the expert said. Because companies stop investments.
EU wants to respond to Trump’s policy
The EU is now planting retribution. The committee emphasizes that the rates will have negative consequences for both the economy and consumers on both sides of the Atlantic Ocean. Ultimately, this trade war will only produce losers.
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.
