Given the new customs announcements of US President Donald Trump, the EU encourages preparations for countermeasures. According to the EU committee, the customs reasons would have drastic effects on transatlantic trade. If the rates came into effect in an amount of 30 percent or more, it would be almost impossible to continue to act in the usual form, EU trading commissioner Maros Sefcovic said on the sidelines of a ministerial meeting in Brussels.
It can then be expected with considerable negative effects on both sides of the Atlantic Ocean. “Let’s face it: a rate of 30 percent would be a factual ban on the trade,” said Sefcovic. The EU trade commissioner emphasized that he would continue the dialogue with the United States to get a negotiating solution before 1 August. This is the date for which Trump had announced the entry into force of a habit of 30 percent for importing the EU. If there is no agreement, the EU wants to respond with against tariffs.
Hattmannsdorfer: “Solution at the negotiating table”
“Our goal is and remains a solution at the negotiating table,” said economic minister Wolfgang Hattmannsdorfer (ÖVP) before the special meeting of the EU minister of trade. But it was also time to “speak a clearer language”. The EU must “take place consistent and confidently”. Given the new announcements of Trump, he called for countermeasures to be taken into effect and to draw up further measures.
EU could focus on the import of the US in the value of billion
According to the EU circles, preparations for countermeasures on a list of American products that can be influenced by new EU rates such as negotiations on a mutual solution should not lead to success. After a public consultation, it was recently adjusted again and, according to information from the German news agency, there is now an influence on import from the US worth around 72 billion euros.
The third year of the recession in Austria threatens
In the worst case, the endangered rates would be the result for the Austrian economy that, in contrast to the expectations of economic researchers, there is no more small growth and the third year of recession comes. According to the first calculations of the Kiel Institute of World Economy (IFW), the European economic output can be reduced by 0.5 percent in the short term, said Wifo economist Harald Oberhofer in the “Ö1” afternoon journal. According to Igor Sekardi, head of the Ministry of International Relations and Markets at the Industrialist Association (IV), the Food and Mechanical Engineering Industry in particular would suffer from new rates in ORF Radio.
According to Spö-EU delegation manager Andreas Schieder, the commercial ministers have to agree on counter-tariffs “instead of waiting for the next two weeks”. “We are the largest internal market in the world and an important trading partner for the United States”. The EU must “free itself from the defense”.
From the perspective of the Neos delegation manager in the EU parliament, Helmut Brandstätter, a common front of the EU is now requested from the US president. “We can only negotiate with Trump if we have a very clear position – even if he also feels that we are not afraid and will face him,” said Brandstätter in Vienna on Monday.
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.
