FPÖ justifies Putin's war and Trump's tariffs - what does that mean for us?

FPÖ justifies Putin's war and Trump's tariffs - what does that mean for us?

In an increasingly conflict-loaded international trade environment, the FPÖ surprisingly defended Donald Trump's US customs policy and at the same time postponed responsibility for the tariffs of the European Union. This was recently sharply criticized by Reinhold Lopatka, the head of the People's Party in the EU Parliament. According to OTS , the FPÖ are roling the roles of the perpetrator and victims when it comes to their own ideology. The internal dispute within the party about US customs policy is evident.

Barbara Kolm, one of the FPÖ National Council MPs, critically commented on the tariffs, while Susanne Fürst, also MP, defended the USA's trade policy. Lopatka warns of the dangers of a trade war that only knows losers and emphasizes the significant role of the EU as the largest internal market that she wants to represent strongly and confidently. Austria therefore strives for a negotiating solution with the USA.

the tariffs and its effects

On April 5, Trump announced a drastic increase in tariffs to all imported products in the rose garden of the White House. From April 9, reciprocal tariffs are to be raised on products from countries that face US imports. According to Kurier , the EU will also be affected by the increased tariffs, with a total customs of 20 percent to European goods and up to 34 percent being imposed on products from China. Customs on cars will increase to 25 percent from April 6th, which increases the economic pressure on affected states such as Germany and Austria.

The EU Commission is concerned about the possible negative effects on the economy. It is estimated that EU export damage due to the tariffs could be over 12 billion euros. In addition, analysts expect an increase in inflation in the United States by up to 1.2 percent and a decline in GDP between 0.8 and 1.3 percent. Austria's own economic situation could also shrink to 0.2 percent, even while it is already in a recession.

long -term consequences for the EU

Analyzes from diw illustrate that not only direct exporters will suffer from the new pay, but also companies that supply these exporters with raw materials or services. Simulations show that a flat rate of 25 percent in the long term could reduce the EU export figures to the United States by half. Central sectors such as the pharmaceutical industry and transport equipment are particularly affected.

The EU, however, has strategies in prospect of compensating for possible losses, including the expansion of trade relationships to other partners, such as Canada and Japan. These measures should not only alleviate the negative effects of tariffs, but also reduce dependence on US demand and diversify exports.

Overall, the interaction between political rhetoric in Austria and the real economic challenges that the EU is faced with is evident. The developments in the coming days and weeks will be decisive for how the trade conflict between the USA and the EU will continue to develop.