Dramatic warning: Trump and the trade war threaten Austria!

Dramatic warning: Trump and the trade war threaten Austria!

Österreich - On April 4, 2025, Helmut Brandstätter, the Neos delegation manager in the EU Parliament, warns of the serious risks that Donald Trump's customs policy brings. In a current statement, Brandstätter emphasizes that a trade war could not only significantly damage the European but also the Austrian economy. As the increase in inflation, it describes a slow -growing economic growth and the endangerment of numerous jobs, especially in export -oriented countries such as Austria, are direct consequences of such a conflict. Brandstätter also criticizes the FPÖ, the Trump's procedure either supported or downplayed.

Another central point of his argument is the call to the European Union, to move closer together and to reduce remaining trading barriers. According to Brandstätter, these measures could grow the EU economy by an impressive 1.2 trillion euros. At the same time, he also sees an opportunity for Europe in confrontation with the United States, strengthened from the situation, provided you draw the right conclusions from it. The business professional is very aware of the economic policy escalation and appeals to a collective European answer to the challenges.

historical parallels and warnings of experts

This current situation arouses memories of the global economic crisis of the 1930s when high tariffs triggered global crises. According to a report by tagesschau.de, economists spoke a lack of understanding for Trump's customs policy worldwide. Roberto Azevdo, the former general director of the world trade organization, warns for caution. He refers to the Smoot Hewley College Act, which led to a global customs escalation and drastically restricted international trade.

Carsten Brzeski, chief economist of ING Bank, draws similar comparisons at the time when protectionism and tariffs significantly impair economic relationships between countries. While the tariffs of the 1930s provoke countermeasures from other countries, experts today warn of similar consequences that could ultimately endanger world trade. Jörg Krämer, chief economist of Commerzbank, responds somewhat more differently to the situation and explains that the tariffs of the 1930s were not the main cause of depression, but only tightened.

economic perspectives and effects

Krämer emphasizes that the current economic situation is characterized by the possibility that central banks can create new money, in contrast to the time when the restrictive gold standard policy prevented a flexible reaction. While there was mass unemployment in the 1930s, there is currently almost full employment in the United States.

However, he warns that the tariffs could have a negative impact on the US economy by driving up the production costs and thereby increasing the prices for American consumers. If the USA withdrawal from the international division of labor, the consumer expenditure of American citizens could also be severely affected. Ken Rogoff, a former chief economist of the International Monetary Fund, expresses his perplexity about future development, which also reinforces the uncertainties in global trade policy.

It remains to be seen how the situation will develop and what measures the European Union will ultimately take to counter the challenges by Trump's customs policy.