Customs conflict: Meinl-Reisinger warns of the trade crisis between the USA and the EU!

Customs conflict: Meinl-Reisinger warns of the trade crisis between the USA and the EU!

In the context of the current trade relationships between the USA and the EU, US President Donald Trump recently announced that it will raise tariffs of 30 percent from the EU from August 1st. This decision ensured concern in Europe, especially in Austrian diplomats. Foreign Minister Meinl-Reisinger, who is currently in Washington, described the customs dispute as a "loose-free situation" and emphasized the importance of free and fair trade for both regions. Her meeting with US Secretary of State Marco Rubio took place at the invitation of the Senator and is all about strengthening the transatlantic relationships and promoting common interests, especially with regard to war in Ukraine and peace in the Middle East.

The EU meanwhile is working on negotiations to find possible solutions in the trade dispute with the USA. This affects not only direct exporters, but also numerous companies that act as suppliers or service providers. According to an analysis, the upcoming tariffs could have significant negative effects on the European economy. Simulations show that an EU exports of 25 percent alone could reduce the long-term by half. Sectors such as pharmaceuticals, transport equipment and motor vehicles would be particularly affected. The results indicate that the EU could drop its real gross domestic product (GDP) on average by 0.25 percent.

strategies of the EU for damage limitation

In order to counter the economic consequences of the impending tariffs, the EU plans to expand trade relationships with free trade partners such as Canada, Japan and South Korea. Such an offensive trade strategy could help reduce the dependence on US demand and at the same time compensate for economic damage. In the event of serious negotiations, the EU could try to reduce non -tariff trade barriers and to strengthen regulatory cooperation.

The upcoming US presidential election could be fundamental to future trade policy. Reports indicate that Trump could also maintain customs increases in a second term. If there is an intensive customs policy, this could have serious effects on transatlantic trade relationships. Simulations show that an increase in tariffs to 20 percent in both regions would lead to a GDP decline in up to 1.5 percent in Germany and 1.3 percent in the entire EU.

The role of Austria in the transatlantic dialogue

Meinl-Reisinger underlined the strong transatlantic partnership and pointed out the challenges that are important for both the USA and Austria. According to Germany, the United States is the second most important export destination for Austria, especially in the areas of pharmaceutical and mechanical engineering. Your visit to Washington is also related to the concerns of Austria to win a non-constant seat in the UN Security Council for 2027/2028. Talks with members of the congress, including Nancy Pelosi, are also planned to deepen bilateral cooperation.

Current developments show that a customs conflict with the United States could not only result in displacements of profit, but also an tightening of existing trade relationships. These developments could exert a further pressure on the trade balance of both partners and emphasize the need to reduce critical dependencies on other markets. Transatlantic cooperation remains of central importance in coping with common challenges and securing a stable economic future.

Kleinezeitung.at diw.de
iwkoeln.de