Trump plans massive tariffs: Austria's industry in crisis!

Trump plans massive tariffs: Austria's industry in crisis!

New Orleans, USA - warm greeting from the USA! President Donald Trump has caused excitement again by indicated plans for massive tariffs on steel and aluminum imports. These import duties, which are expected to be 25 percent, could have far -reaching consequences for European industry. As krone.at reported, the measures affect not only large companies such as Voestalpine, Amag and BMW Steyr, but also other industries that are successful in the USA. The fact that Austria's export to North America has increased by 14 percent to a total of 14 billion euros last year is particularly alarming. Whether this positive development continues to exist is on the brink.

The plans of the new tariffs also seem to be part of Trump's efforts to compensate for the US trade deficit. As reported by sueddeutsche.de , almost half of the aluminum needs of the USA and a quarter of the steel requirement are related to foreign suppliers. Trump, who already imposed tariffs on steel and aluminum four years ago, likes to give granite that he wants to protect the American industry, but the effects on European exporters could be devastating. At the time, companies such as Amag considered passing on to the costs to alleviate the financial pressure and managed to get away with the most part. But the uncertainty remains. It remains to be seen whether such pragmatic solutions will occur this time.

The fears of industry

Austria's steel industry could again suffer greatly from these new tariffs. According to experts, export growth could be severely affected, which would put a strain on the country's entire economic output. Voestalpine has already reacted and sees the share price sink. It is still unclear whether there will be similar solutions to the past. The EU also plans its own measures to put pressure on the United States and could in turn impose punitive tariffs on American products. In this way, the coming weeks will remain crucial for European industry and its economic outlook.