Austria’s Economy Minister Wolfgang Hattmannsdorfer recently commented on the possible introduction of US tariffs under President Donald Trump. In a conversation with leading export companies, he emphasized that Europe should react to the challenges with self-confidence, without being intimidated by Trump’s tariffs.
He pointed out that Austria’s economy, which is dependent on exports to the tune of 60 percent, with the US playing a key role in a trade volume of 16.2 billion euros. Hattmannsdorfer stressed that it is not about escalating the tariff dispute, but rather finding solutions at the negotiating table quickly. He also emphasized that the EU should present itself as a strong and united trading power and should focus on opening up new markets and partners, such as South America and India.
The president of the Industrial Association (IV), Georg Knill, stated that trade barriers on both sides would cause harm. He called for a strong reaction to Trump’s populist actions and for the EU to push forward with the development of the internal market.
Knill agreed with the demand for setting tariffs to zero, but also emphasized the need to show a “hard edge” in the event of no agreements. Harald Oberhofer, an economist at the Austrian Institute of Economic Research (WIFO), estimated the economic effects for Austria and the US, warning of possible recession effects and highlighting the unpredictability of exchange rate developments.
In conclusion, he noted that the planned US tariffs could weaken Austria’s economy by about 0.2 percentage points, which could lead to a decline in the country’s gross domestic product (GDP), as shown by estimates from the Institute for Advanced Studies (IHS).