Pursue a Comprehensive Trade Agreement – Expand Trade Partnerships
The Federation of Austrian Industries (IV) views the agreement reached in the months-long tariff dispute between the EU and the U.S. with great caution. On the one hand, negotiations helped avert a full-scale trade war of considerable magnitude. “Given the importance of the U.S. as Austria’s second most significant trading partner, a reliable and predictable trade policy framework is of high relevance for our export-oriented economy,” emphasized IV Secretary General Christoph Neumayer.
Nevertheless, the IV is highly critical of the widespread introduction of 15 percent tariffs, even though exceptions have been granted for selected sectors. Particularly problematic are the continuing 50 percent tariffs on steel and aluminum products. In 2024, Austrian exports to the U.S. in these sectors amounted to around one billion euros.
“Tariffs, no matter the level, act as a burden for businesses on both sides of the Atlantic and produce only losers. This basic agreement, in light of the new tariffs, must be the starting point for further negotiations toward a zero-tariff goal and a renewed attempt at a comprehensive transatlantic trade agreement. Global trade needs long-term reliability, not just short-term deals,” Neumayer continued.
Call for a Resilient and Strategic EU Trade Policy
The Federation of Austrian Industries calls on the EU to draw lessons from this conflict and to shape European trade policy in a more strategic and broader way. This includes, above all, the expansion of trade agreements – especially with Mercosur, India, and Mexico – as well as strengthening the multilateral trading system under the WTO.
“Europe needs an active industrial compass and a trade policy that keeps global markets open while protecting European companies – not only in times of crisis, but also on a structural level. In this sense, the negotiated trade agreement with Mercosur is of strategic importance. The Austrian government must also abandon its resistance here and pave the way for more growth, jobs, and prosperity,” Neumayer concluded.