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Tariffs from the USA: Rising prices and risks for Austria's economy!
EU reaction to US tariffs: Economist Harald Oberhofer predicts a moderate impact on Austria's economy and possible price increases.
Tariffs from the USA: Rising prices and risks for Austria's economy!
The tariff plans announced by US President Donald Trump, which include special tariffs of 25 percent on steel and aluminum imports, have already caused concern in Austria. According to WIFO and WU trade economist Harald Oberhofer, the effects will not be dramatically noticeable immediately, but the long-term consequences should not be underestimated. “From an economic perspective, what is now known is not so relevant that it can produce noticeable inflationary effects,” he explained in an interview with the APA. However, there could be slight price increases in certain areas, such as whiskey or motorcycles. However, if the trade conflict escalates further, prices will probably rise, which will also put a strain on the Austrian economy oe24.at reported.
In Austria, the new customs regulations particularly affect the steel group voestalpine and the aluminum manufacturer AMAG. Oberhofer warned that companies in the USA will have to pass on some of the increased input costs through higher end customer prices. These additional financial burdens could have a negative impact on the competitiveness of US companies. Compared to 2018, when similar tariffs were introduced, Oberhofer expects a more intense trade conflict. The trade dispute is described as “economically a high-risk game” that could also affect the global economy, as the kleinezeitung.at highlights.
Trade conflict under pressure
Oberhofer sees a significant risk for the Austrian economy if Trump introduces comprehensive import tariffs on EU goods. In recent years, the USA has been the largest growth market for Austrian exports. In 2022, Austria exported 243,000 tons of steel to the USA, putting it in 18th place among exporting nations. This situation could change quickly if the conflict is not resolved. Economics Minister Wolfgang Hattmansdorfer emphasized the need for a diplomatic solution and warned: “A trade war harms everyone involved.” This shows that the EU, which has significant influence in the field of technology and digitalization, is ready to stand up to Trump to protect its own interests.