US President Donald Trump has announced a new round in the worldwide trade conflict: the mutual rates he has announced must also meet the European Union and also Austria. In Vienna this ensures an increased willingness to warn. Economic Minister Wolfgang Hattmannsdorfer (ÖVP) is now looking for a counter -reaction for the Achilles heel of Trump.
Business representatives and politicians in Austria see a threat to domestic exports in American customs plans, a central pillar of the Austrian economy-the United States in Germany are our second most important trading partner. The industry and the machine and metal industry, such as Wu Retail economists Harald Oberhofer explained in a press conference on Thursday, would in particular be influenced.
IV Boss: “Must show hard Edge”
Georg Knill, president of the Industrial Association, warns: “Trade barriers bring losers on both sides.” It cannot be denied that Europe will feel disadvantages in the short term, but the US economy will also suffer from the measures. Knill therefore calls for EU shoulder: “Now it is a matter of negotiating how we deal with it. We have to show a hard lead here.”
A shot in your own knee?
According to Oberhofer, Trump’s rates not only threaten Europe, but also for the US itself. “Without taking into account the EU countermeasures, the Austrian GDP will fall by 0.35 percent in the coming years. Exports will fall by 1.4 percent,” said the economist.
At the same time, Minister Hattmannsdorfer expects a strong against response from Europe. While the United States mainly preserved goods from Europe, Europeans mainly consume services of the States.
Minister: “confirm where Trump meets the most”
“We now have to start where Donald Trump touches the most politics: with the technology companies or even with products from Republican States.” The EU could now rely on digital taxes and tighten the provisions of the Digital Market Act. The Friends of Trump in particular should now notice that they too need good relationships with Europe, the minister said.
Trump’s plan only worked moderately
During his first term, Donald Trump had already tried to strengthen the US economy with high rates against China. Success, however, was limited: many companies brought their production moved to Mexico or Canada instead of back to the US.
Oberhofer is skeptical that Trump will be more successful with his new customs strategy: “The United States has a trade surplus for services, the EU, on the other hand, on the market. Trump asks the rules-based trading system under pressure-the question is whether this really entails the desired effect in the long term.”
What is the EU doing now?
On the coming Monday, an extraordinary EU ministers of the Council of Trade in Luxembourg will deal with the subject. EU president -President Ursula von der Leyen has already announced that Brussels would respond to the American rates with countermeasures. The steel rates in particular should not remain unanswered.
Hattmannsdorfer also requires a coordinated approach to the European Union: “We should not be intimidated by bizarre political models. It is important that we seem closed and put specific pressure.”
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.
