US Tariffs: Expert Sees No Major Impact for Austria for the Time Being
Specifically, for goods such as whiskey or motorcycles, there could be slight price increases, but a significant inflationary effect is not expected, the expert said in an interview with APA. It would be different if the conflict were to escalate further.
"From an economic perspective, what is currently known is not so relevant that it could create noticeable inflationary effects," said Oberhofer. After the US measures came into effect on Wednesday, the European Union announced its own import tariffs on luxury and consumer goods of American origin. For Oberhofer, these are mostly "symbolic products," but not "export hits." Therefore, the question arises whether the import tariffs could actually be passed on to consumers. Because fundamentally, such goods are relatively easy to bypass. In 2018, when the EU was in a very similar situation, for example, the motorcycle manufacturer Harley Davidson had to absorb the additional costs.
Higher Pressure on Prices with Further Escalation
However, if no agreement is reached in the tariff dispute - the EU Commission is open to talks - and the conflict escalates further, it will indeed "put pressure on prices," warns Oberhofer. The consequences would be particularly significant if the tariffs were to be applied across the board and affect sectors such as the automotive industry. Of course, such an escalation would also be extremely painful on the other side of the Atlantic, the economist noted.
US Steel and Aluminum Tariffs in Effect
The US steel and aluminum imports, which have been in effect since today, primarily affect the Linz-based steel company voestalpine and the Upper Austrian aluminum company AMAG in Austria. However, voestalpine can largely cushion the costs through its own production in the USA, said Oberhofer. In general, the steel and aluminum tariffs are a burden for American companies, as they increase the prices of intermediate goods for them and could subsequently worsen their competitive position.
Hattmansdorfer: USA Must Return to the Negotiating Table
Economics Minister Wolfgang Hattmansdorfer (ÖVP) insisted on a diplomatic solution. "A trade war harms all parties involved. The USA must be brought back to the negotiating table quickly," he was quoted in a statement. However, the EU need not fear the USA and its President Donald Trump. "If necessary, the EU has the greatest leverage in the area of American tech giants, social media, and digital platforms to stand up to the USA."
Christoph Neumayer, Secretary General of the Federation of Austrian Industries (IV), also emphasized in a statement that trade barriers such as tariffs are disadvantageous for both sides. Dialogue with transatlantic partners must now be sought. Industrialist Hans Peter Haselsteiner also regretted the development on the sidelines of a press conference in Vienna. There can only be losers, and the bill would likely be paid mainly by US consumers. Of course, exports from Austria and Europe would also become more difficult.
(APA/Red)
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