Austria's auto industry under pressure: US tariffs endanger jobs!

Austria's auto industry under pressure: US tariffs endanger jobs!

Österreich - The Austrian auto supply industry sees itself exposed to serious challenges by the new US customs policy under President Donald Trump. According to a report of the Krone , industry representatives of the Austrian Chamber of Commerce (WKÖ) warn of possible production and job losses that could result from the new regulations.

The tariffs introduced by Trump increase the levies to vehicles produced outside of the USA from 2.5 percent to 25 percent. Hansjörg Tutner from the WKÖ vehicle industry emphasizes that the United States is the most important export market for Austria to Germany. Much of the Austrian supplier products are processed in Germany and then delivered to the USA.

response to customs policy

The WKÖ calls for a determined European answer to these protectionist measures. Tutner emphasizes that it is crucial to show strength to the US government to lead negotiations at eye level. The overarching goal should be an abolition of the mutual tariffs, which, however, currently does not seem to be achievable. In addition, regardless of the country of origin, the introduction of a sales tax for all vehicles makes it clear that this measure cannot be used as an argument for US tariffs, as in a report by Industriemagazin explained.

The negative effects of the US tariffs affect not only European manufacturers and suppliers, but also the American consumers. Tutner warns: "Customs endanger hundreds of thousands of jobs because many European automobile manufacturers operate large works in the United States and export products to Europe." He proposes to take into account a common appearance of the EU with countries such as China, South Korea, Mexico, Great Britain and Japan to react to American customs policy.

international dimension and challenges

In another context, the Deloitte report also faces challenges. Companies have to react to the rising tariffs in order to remain competitive. A potential strategy could be the relocation of production facilities to the United States, which requires high investments and efforts.

The adaptation of the global production strategies is rated as crucial in the current, turbulent situation. High product quality is particularly essential for German premium manufacturers. Nevertheless, the announcement of tariffs could lead to job losses in Germany, which makes the forecast about the size of the job cuts currently difficult. Factors such as the durability of customs development and the actual shift in production will strongly influence the future of the industry.