US Tariffs Affect Austrian Supply Industry Mainly Indirectly

Austrian companies in the supply industry are mainly indirectly affected through exports by German car manufacturers, who already produce a lot in the USA and primarily export to the USA in the luxury segment. Other industry representatives do not view the US tariffs as calmly.

US Tariffs: Wifo Chief Expects Negative Consequences for Austria

Given the current situation, these are "particularly threatening," said Hansjörg Tutner, Deputy Chairman of the Vehicle Industry Association in the Chamber of Commerce (WKÖ) last Thursday. Wifo Director Gabriel Felbermayr also expects a negative impact on domestic production. Former Magna board member Günther Apfalter pointed out to the Morgenjournal that Chinese manufacturers could offer themselves as alternative buyers for the domestic supply industry. The new US regulation provides for tariffs of 25 (previously: 2.5) percent on all cars not manufactured in the USA. According to Trump, the measure will lead car manufacturers to build their plants in the USA. Trump had previously criticized the existing EU tariffs on automotive products and hinted at imposing his own tariffs.

Disagreement on Possible EU Response to US Tariffs

It is still unclear how the EU will respond to the US tariffs. The European Union (EU) must now "make the threats real" in response to the US car tariffs, for example in the digital sector, said economic researcher Felbermayr. "If you do nothing, you make it very easy for tariff warriors worldwide." At ARBÖ, there is concern about a further increase in car prices for consumers. "A further increase due to tariffs, which may now be imposed as a countermeasure on vehicles from American production, should therefore be rejected in the interest of consumers," said ARBÖ Secretary General Gerald Kumnig. Tutner and also Minister of Economic Affairs Wolfgang Hattmannsdorfer (ÖVP) advocated for a negotiated solution to the trade dispute on Thursday. However, Hattmannsdorfer does not rule out a decisive reaction from the EU. "Thus, the introduction of special levies on large US platforms - such as streaming services, online marketplaces, and cloud providers - is a possible approach that must now be examined."

(APA/Red)

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