As “Day of Liberation”, US President Donald Trump celebrated his huge customs increase for foreign products on Wednesday evening. The American trade deficit is intended to purchase, for the EU and Austria there is a risk of massive burglaries during American exports. Many will suffer from car suppliers for wine growth. Now you are waiting for the announced “strong plan” of the EU.
You will see exactly how Trump’s Customs Hammer Strikes: Trump has announced American rates for trading partners worldwide at least ten percent, for goods from China it will be 50 percent for Lesotho. It was clear in advance: the United States has a trade deficit for goods of $ 1200 billion compared to the rest of the world. Accordingly, all States must be affected accordingly to make imports in the US more expensive and therefore prefer US producers.
Trump set the number of 20 percent for the EU. 25 percent is due to imported cars and car parts and all at 0.01 hours on Thursday US East Coast period (6.01 hours of CEST) for the first. The United States, usually through German manufacturers, are currently an important buyer for Austria car suppliers.
Many companies with a focus on Styria and Upper Austria are in good things in this industry or as a supplier, especially for cars in Germany, Hungary and Slovakia. The BMW motor factory in Steyr produces discs for the BMW factories in the US.
Markus Huemer, head of the upper Austrian plastic specialist Polytec. However, he says: “The effects of the rates are exaggerated. In recent years, production in Europe has fallen by 25 percent due to high energy prices, inflation, interest policy and combustion plans.”
Austria probably loses 0.21 percent according to the prediction
The Vienna Economic Research Institute Wiiw has calculated how much Europe as a whole is being influenced: according to the study, the EU vehicles and their parts with 300 billion euros per year. In the case of an assumed customs -related fall from export to the US by 25 percent, the European economy loses around eight billion euros. Austria would therefore lose 0.21 percent of its total export. Slovakia and Croatia have even met about one percent, for Germany you expect 0.3 percent alone in the automotive sector.
Taxes on steel and aluminum are already in force
Taxes on steel and aluminum of 25 percent are already in force. This mainly influences the foot alpine and the aluminum center Amag. Both mainly supply special products for railways or aircraft manufacturers. There they are difficult to replace, according to the two companies, so that their customers will probably pay the higher prices to a large extent.
American market for winemakers after Trump announcement “de facto killing”
There are clearly many vibrations with the WineGrowers of Austria. The last week Trump had announced that they wanted to pick up a huge 200 percent centimeter on wines, cognac, champagne and other import alcoholist. According to the Vienna Chamber of Agriculture, the American market is now “de facto dead” that American wine traders have immediately canceled their orders. The well -known Mayer -Wijnmakerij on the Parochiesplein is worried about a third of exports, which would be 80,000 bottles. In total, the domestic winegrowers sold around three million liters worth 20 million euros to the United States.
For the wine industry of Italy it is even an export value of two billion euros a year, and France also expects huge burglaries, especially for spirits, for which America is the most important abroad.
What is the “strong plan” of the EU?
The question is how the EU responds to the latest customs customs from Trump. Until that time, many countries, comparable to the industrial president of the Austria, Georg Knill or Minister of Economy Wolfgang Hattmannsdorfer, trust in negotiations with the American government, because everyone would suffer from an “eye for an eye” trade war. Committee -President Ursula von der Leyen has been looking for discussions with the Trump team for weeks, but has so far flashed. In response to Trump’s announcements, she has announced a “strong plan”.
Now the experts in Brussels expect the financial consequences of the customs hammer. Then you also want to decide to the same extent. At the same time, people try to deepen the relationships with Japan, India and even China to form a counterweight to Trump’s politics.
In any case, the chairman of the Trade Committee expects serious negative consequences in the European Parliament. “These unjustified, illegal and disproportionate measures can only lead to further escalation and an economic downward spiral for the US and the world as a whole,” said the German SPD politician Bernd Lange. From the point of view of the normal citizen it is not “day of liberation, but of inflation”.
ECB President Christine Lagarde expects negative effects worldwide. The damage depends on how far the rates have actually been stretched, how long they lasted and whether they have activated successful negotiations, Lagarde said Wednesday. The Italian head of the Giorgia Meloni government, who is actually close to Trump, has responded critically. She called the new rates “wrong”.
While Trump wants to “make” again “again” with the rates and lead “back to the Golden Age”, many fear that the leaders of the new customs line will be consumers in the United States.
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.
