Inaugural interview

“We don’t have to be afraid of the USA”

The 45-year-old Upper Austrian wants to "roll up his sleeves" and herald a "reindustrialization" in Austria.

(Bild: Imre Antal)

Economics Minister Wolfgang Hattmannsdorfer calls on the EU to take a bold and confident stance towards the USA. Europe has effective weapons to defend itself in the trade war launched by US President Donald Trump.

"We are the largest single market. We have nothing to fear, neither from the USA nor from Donald Trump. The tariffs and trade policy that Donald Trump is pursuing are primarily damaging the USA. They are massively fueling inflation. Economic growth there has to be adjusted downwards almost every week because Donald Trump is shooting himself in the foot with his policies," says Hattmannsdorfer in an interview with "Krone".

EU should target digital companies
He believes it is right that the EU has responded to Trump's tariffs on steel and aluminum with a four billion package of tariffs on Harley-Davidson, jeans, whiskey and everything produced in Republican states as a first step. Another package of 18 billion is in the pipeline, covering food and groceries, from steak to soybeans.

"And we should also put together a third package that will hit the US hard because it targets digital companies, social media platforms and digital services such as Netflix," says Hattmannsdorfer. "That could also be a third escalation screw. But, and I say this very clearly, a trade war, a tariff war, doesn't benefit anyone, especially not Austria, which earns six out of ten euros from exports, and that's why the primary goal must now be to force the USA to the negotiating table with these tough and unequivocal measures."

Trump is causing upheaval with his erratic economic policy.

(Bild: APA/AFP/SAUL LOEB)

When asked about Trump's goals, Hattmannsdorfer says: "I have the impression that Trump primarily bases every political measure on whether his fans like it or not. It's difficult when politics is made exclusively for the regulars' table in the cowboy saloon. We know that the automotive industry and seafood are particularly important to the US President. These things, which we are aware of, must all be put on the table and we must work together to find a fair solution."

Minister will seek talks with new US ambassador
Austria and the EU need stable relations with the USA. As soon as the new US ambassador for Austria has been appointed, he will contact him or her immediately and make an appointment. "The USA is the second most important export partner and, contrary to other exports, where we have declined everywhere in the last year, we have also had a significant increase with the USA."

The EU had set the wrong priorities in recent years. A reindustrialization and a clear focus on competition are needed again. "We must ensure that we also have a strong presence on the global market and stop the EU's bureaucratization mania. Keyword deforestation regulation and supply chain regulation. We need a comeback of performance and competition in Europe and in Austria. If we don't want Europe to die a beautiful death, then we now need to focus on competition, jobs, income and the question of how we can maintain our prosperity," said Hattmannsdorfer.

The new Minister of Economic Affairs in his inaugural interview with the "Krone" newspaper

(Bild: Imre Antal)

Europe must focus on key technologies, he said. "I'm thinking of semiconductors and chips, for example, where Austria is number four in Europe. The same applies to life science, environmental technology and mobility. We have to concentrate on our strengths." If China can no longer sell its products to the full extent in the USA, it will exert more pressure on Europe. According to the Minister, this has been taken care of.

EU wants to put the brakes on low-cost platforms
There is also a "protective shield" aimed at environmentally harmful production, according to Hattmannsdorfer. This is a defense mechanism against products from Asia. "An environmental tariff that takes into account the CO2 intensity of production in the respective country of origin," explains the new Minister of Economic Affairs. "In the Competition Council, we have also addressed the issue of low-cost platforms such as Temu. We are calling for the duty-free limit of 150 euros to be abolished so that we are not flooded with cheap Chinese products," explains Hattmannsdorfer.