Trump Tariffs Endanger 15,000 Jobs in Austria

In Austria alone, the Trump tariffs would lead to the loss of 15,000 jobs and reduce the gross domestic product by 0.4 percent, according to an analysis published on Tuesday by Bank Austria as part of its economic report.

Mood in Domestic Industry Bad Due to Trump Tariffs

Fundamentally, the mood in domestic industrial companies has deteriorated - due to declining orders from abroad and uncertainty caused by US tariff policy with a still missing agreement between the EU and the USA. Meanwhile, the easing of inflation and the relaxation of monetary policy by the ECB have led to a stabilization of the economic situation in Austria despite geopolitical challenges and uncertainties, note the Bank Austria economists. The recession is ending, but growth signals are lacking. A growing domestic demand in the second half of the year should provide impetus and the stagnation could be ended. However, a strong upward trend is not emerging given the existing challenges.

Trump Tariffs Obstruct Stronger Foreign Demand

A significant support of the domestic economy through foreign demand cannot be expected. On the one hand, there is a decreased price competitiveness and on the other hand, a protectionist trade policy originating from the USA stands in the way. "The recent announcement of a 30 percent tariff on all US imports from the EU and thus also from Austria would likely burden the Austrian economic performance by 0.4 percentage points and cost around 15,000 jobs," estimates Bank Austria's chief economist Stefan Bruckbauer. The economic indicator fell slightly in June compared to May to minus 2.1 points. This value below the growth threshold was at least the second best after May. This barometer last signaled growth around mid-2022.

(APA/Red)

This article has been automatically translated, read the original article here.