Commercial war with Trump: Austria's economy in great danger!

Commercial war with Trump: Austria's economy in great danger!

In the context of current international trade policy, Helmut Brandstätter, the Delegation Head of the NEOS in the EU Parliament, is concerned about the escalation by Donald Trump's customs policy. OTS reports that Brandstätter emphasizes the far-reaching negative consequences of a trade war for Europe and especially for Austria. It mentions the risk of an increase in inflation, the risk of braking up economic growth and the threat to jobs in export -oriented countries.

Brandstätter also criticizes the FPÖ for its support or trivialization of Trump's great policy. He calls for a meeting of all EU countries to reduce remaining trade barriers, according to which experts could lead to economic growth of 1.2 trillion euros. Brandstätter sees the confrontation with Trump not only as a challenge, but also as an opportunity for Europe to emerge from this crisis.

dangers of a trade war

economists worldwide have also skeptically commented on Trump's trade measures. Tagesschau describes that the memory of the global economic crisis of the 1930s is revived by Trump's high tariffs to nearby trading partners. The great depression began at the time with a significant stock market crash that fell into a deep crisis.

The former general director of the world trade organization, Roberto Azevdo, warns that the world could move into a similar situation as it was the case when the Smoot-Hawley Collicular Act was adopted, which severely restricted global trade. Carsten Brzeski, chief economist of ING Bank, sees parallels to the then prevailing protectionism policies and warns that the tariffs could lead to a harmful counter reaction from other countries.

global economic effects

Jörg Krämer, chief economist of Commerzbank, comments more carefully and describes today's economic situation than in the 1930s. While mass unemployment prevailed at the time, the current situation was characterized by almost full employment in the United States. Nevertheless, Krämer warns that the tariffs could put a strain on the economic situation in the United States, since the higher production costs finally have to be passed on to consumers.

The consequences of American customs policy are not only limited to the United States; You could also have an impact on the global economy if US users spend less. Ken Rogoff, a former chief economist of the International Monetary Fund, expresses perplexity about the long -term development in this turbulent economic environment.