US Tariffs Threaten Up to 10,000 Jobs in Austria

Last year, with a 10 percent increase in exports to 16.2 billion euros, the USA became Austria's second-largest export market after Germany. Exports of pharmaceutical products increased by 80 percent, and machinery exports to the USA also grew against the general trend. The automotive sector, on the other hand, suffered losses of 17 percent.

US tariffs threaten jobs in Styria and Upper Austria the most

About two-thirds of exports, amounting to 11.3 billion euros, are from Vienna, Styria, and Upper Austria. While Vienna, with the export of pharmaceutical products, which are currently exempt from tariffs, is hardly affected by the US government's measures, the industrial locations of Styria and Upper Austria are significantly impacted by the 20 percent tariffs, noted Bruckbauer. These two federal states must expect economic performance losses of 0.5 and 0.4 percent, respectively, added Bank Austria economist Robert Schwarz. Additionally, 2,900 jobs in both Upper Austria and Styria could be threatened by US tariffs. Vienna, Carinthia, and Burgenland are getting off lightly with an economic slowdown of a maximum of 0.1 percent. The new US tariffs increase the trade-weighted tariff rate for goods exports from 1.3 percent to about 16 percent, according to the chief economist's calculations. Austrian products in the US market thus become about 2.4 billion euros more expensive.

(APA/Red)

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