EU challenged

This is voestalpine’s reaction to Trump’s tariff plans

Following Donald Trump's announcement to introduce tariffs on steel and aluminum imports, voestalpine CEO Herbert Eibensteiner sees a need for action from the EU.

(Bild: Krone KREATIV/FotoKerschi, REUTERS Stock Adobe)

25 percent tariffs on steel and aluminum imports into the USA from all parts of the world - this announcement by US President Donald Trump has already raised eyebrows in recent days. What does this mean for voestalpine? "The USA is a very, very important market for us," says CEO Herbert Eibensteiner. The manager appeals to the EU to take action.

voestalpine has 49 sites in the USA, employs 3,000 people there, and generates around eleven percent of its total revenue in the country governed by Donald Trump, who is now making a clear statement to the rest of the world with 25 percent tariffs on steel and aluminum.

"Take a critical view of trade wars"
How is voestalpine coping with this announcement? "The tariffs are manageable for us," emphasizes CEO Herbert Eibensteiner. Between two and three percent of the revenue generated by the steel group based in Linz (Upper Austria) would - as things stand - be affected by the tariffs. The details of what impact the tariffs will have are still open: "That will become clear in the coming months, it's all very new," says Eibensteiner. Postscript: "We take a critical view of the escalation of the trade wars." 

"We don't need to hide"
The head of 50,670 employees is calling on the European Union to start negotiations with the USA immediately and also to consider countermeasures. "We don't need to hide," says Eibensteiner in the direction of Brussels.

The railroad infrastructure sector is going well at voestalpine

(Bild: voestalpine)

Contracts are being reviewed, investments in the USA are being implemented
The fact is: voestalpine is currently examining the contracts for regulations on who would pay for any customs duties. "There are contracts that provide for the possibility that American customers will have to pay the tariffs," says Eibensteiner, who clarifies that local production avoids the risk of tariffs. The steel group's investment projects in the USA are being implemented: an existing site in Indiana, where high-tech special tubes and profiles are produced, is being expanded. There are also plans to expand production capacity in the area of storage systems - in this case, however, in Louisville, Kentucky.

Part-time models in some cases
How is the sometimes difficult demand situation in the automotive, consumer goods, mechanical engineering and construction industries affecting the locations in Austria? Measures have been introduced here. The reduction of temporary workers is underway, the reduction of overtime and vacation is also the order of the day, and part-time models have been implemented that allow employees to work less and also forgo salary. "We are reducing working hours in order to be able to retain employees," says Eibensteiner, but he also says: "I cannot rule out the possibility that there will be isolated measures for permanent staff." Around 23,600 employees work for voestalpine in Austria.