Trump under pressure: Taco question sparked tariff dispute!

Trump under pressure: Taco question sparked tariff dispute!

The American President Donald Trump is currently under great pressure due to his customs policy. With his strategy of imposing punitive tariffs to various trading partners, he has caused excitement worldwide. A US federal court recently rejected the punitive tariffs he used as illegal. This increases the impression that Trump's politics is often unpredictable and causes both national and international uncertainties. The allegations, often back to customs strategies, are particularly loud in connection with the so-called "Taco trade theory", which stands for "Trump Always Chickens Out". This theory describes its tactics to always soak in negotiations.

Trump reacted clashly to the allegation that he would not remain consistent in his customs yields. In particular, he called a demand for his "Taco trade" strategy "one of the most common questions". Nevertheless, he defended his behavior as part of a negotiation tactic and pointed out that the EU had signaled to be ready for discussions. This happened after he had initially announced that it would only charge penalty tariffs from 50 percent to all goods from the EU, only to suspend this measure two days later.

trade conflicts and Austrian exports

Despite the turbulent political situation, Austria's exports bloom to the United States. In 2019 they crossed the 10 billion euro brand for the first time, which is a record. In the previous year, exports were 9.6 billion euros. Services worth around 2 billion euros are added. According to reports, Austria contributes to the US foreign trade gap at 3.7 billion euros.

The US economy and the tax reform seem to promote the trade, even if there are trade conflicts between the two regions. Michael Friedl, the business delegate in New York, reports an increase in inquiries for investments and market research. At the local level, companies make their decisions, which means that the EU-US relationships remain relatively intact despite the impending punitive tariffs, as well as tariffs.

outlook on possible developments

If you look into the future, a weakening or even a recession in the USA will be expected from the end of 2019. Current forecasts indicate a decline in GDP growth in Germany and a possible challenge for European exports, especially by Trump's threatening penalty tariffs to auto imports. These developments could endanger Austria's positive export development, which has so far seemed stable.

summarized Trump remains at the center of a strudel of political and economic tensions. The interactions of its customs strategies and their effects on international trade remain one of the most interesting challenges in his presidency.

For more information about the customs strategies and their effects, please visit 20 minutes and Kurier .