In the press foyer according to the Council of Ministers, ÖVP CEO Wolfgang Hattmannsdorfer briefly explained what every EU reactions of US President Donald Trump could look like. You could actually remember measures that would take Trump’s supporters in particular.
Hattmannsdorfer wants to analyze the possible effects of the new American rates on the Austrian economy and advise together with IV president Georg Knill and the representatives of important export companies on Thursday. Next Monday, an extraordinary EU Trade Minister Council will discuss the subject in Luxembourg.
Targeted rates for products from Republican countries?
There were already some ideas, as Hattmannsdorfer said on Wednesday. For example, not only particularly prestigious American exports such as jeans or motorcycles in the EU can be documented with rates. There is also the consideration to consciously provide products that come from states where Trump’s Republicans have the majority. Trumps supporters would be taken with these measures.
The EU should not make itself small, the ÖVP minister emphasized: “We must appear accordingly.” But: “A trade war does not apply – neither the United States nor Europe. The goal must always be a return to the negotiating table. But we should not respond if it is too late.” The EU is the largest internal market in the world, “and it is precisely this common economic power that we must now use specifically to effectively represent our interests”.
The industry fears “enormous economic damage”
Knill warned against journalists in Vienna that an escalating transatlantic trade conflict would lead to “enormous economic damage to both parties and the global trading structure”. Export-oriented economies such as Germany or Austria would in particular be affected, according to the IV president. “For the Austrian industry, the new American rates are in any case necessary, an EU’s answer, which must be carried out in terms of proportionality and the Austrian and European industry should not burden exuberantly.”
The United States are the second most important export market for Austria with an export volume of 16.2 billion euros, which corresponds to a share of 8.5 percent of exports. Only Germany is even more important with a volume of 56.8 billion euros and a share of 29.7 percent.
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.
