New trade barriers are being discussed again. US President Donald Trump should now plan rates for medicines, raw materials and semiconductors. The high rates will dismiss inflation in the US and also influence the economy in this country. According to the National Bank, this is painful, but panic is still not appropriate.
Despite difficult framework conditions, the Austrian foreign industry was able to claim well in 2024. The current account showed a surplus of 11.7 billion euros, which is more than 2 percent of GDP. But the photo could cloud this year, the National Bank warns.
Expect less economic growth
So far, the WIFO has adopted 0.3 percent less economic growth as a result of the rate announced at the beginning of April. But that is only the lower edge. Negative currency effects and less confidence in trade relationships can still aggravate. But Oenb Vicegouverner Edeltraud stepder calms something and says that the American rates are “painful but manageable”.
In any case, it is also painful that Austrian export companies in 2024 had to accept sensitive falls in some sectors, especially in mechanical engineering and the vehicle industry, according to the National Bank. Because the increasing surplus was not due to an increase in export, on the contrary: the export dropped, only imports dropped even more. According to the OENB, tourism is a spark of hope. This remains a stable source of income. With a turnover of 24.3 billion euros, the travel industry returned to the level of pre -crisis.
Germany for the most important export destination of the US.
Among the export countries, the United States is the second most important market for Austria with around 15 billion euros. In the first place, Germany is undoubtedly with 54 billion euros. The third place is Italy with a volume of 11 billion euros and also Switzerland with 11 billion euros. The fifth most important market is Hungary, which comes 6 billion euros.
The United States is currently also discussing new rates about pharmaceutical articles, raw materials and semiconductors. This can also cause incisions for the entire European economy. Because if the rates go everywhere, the export of 170 billion euros would also be affected. In general, the EU export would then be the size of EUR 549 billion with rates, said trade commissioner Sefcovic – “a huge extent”.
American companies are already responding with price increases
The rates already have an impact in the United States. The American car company Ford is preparing for a pollution of billion dollars due to the import duties. The result can be the price increases. Toy manufacturer Mattel also prepares the price increases in the US. The group will adjust the prices on the American market at the places where it is “necessary”. Trump already reacted mockingly – girls would also be enough instead of 30.
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.
