Trump's tariffs hit a sour note with Austria's piano makers

CGTN Europe

With tariffs topping up a $250,000 Bösendorfer's cost by $50,000, producers may target new markets. CGTN's Johannes Pleschberger reports from Vienna.   Read more here ⬇️ https://tinyurl.com/mtkpb2fk  #piano #tariffs #trump #austria

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00:01Bösendorfer has been making pianos since 1828, with its highly regarded instruments being

00:06sent out around the world.

00:10The average cost is $250,000.

00:14Tariffs on those packaged and shipped to the United States will add an additional $50,000.

00:20Enough perhaps to prompt American clients to look elsewhere, some fear discord ahead

00:26for the world's oldest premium piano manufacturer.

00:29We have to think, of course, to go into other markets and expand these markets or to reduce

00:35a little bit our production quantity.

00:38This might also happen if the prices are too high or to be more flexible with our prices.

00:43According to estimates from Vienna's Institute of International Economic Studies, European

00:50exports to the US will drop by a quarter due to President Trump's Liberation Day measures.

00:56US tariffs are changing the tune not only for Europe's premium exports like these Bösendorfer

01:03pianos, but for all industries, particularly the German and Austrian machinery sector.

01:09The two countries currently have some of Europe's worst growth performance figures and will be

01:14particularly hit by Washington's 20% levy.

01:18Those countries who are more trade open, like Germany and Austria, will be affected a little

01:23bit more.

01:24So we are talking about maybe 0.4, 0.5% of GDP, which doesn't sound a lot, but on the other

01:33hand, if you consider that current growth is around zero, it makes a little bit of a difference.

01:40Reducing half a percent of GDP means more business failures and unemployment.

01:45At the same time, exporting less to the US could mean more products remaining in Europe

01:50and lowering prices for local consumers.

01:53Overall, it's a neutral effect for the economy's welfare, so to speak.

01:58Consumers will gain a little bit, producers will lose a little bit.

02:02And while producers may lose American customers, they also might gain them elsewhere, European

02:09companies are now trying to increase trade with alternative markets such as East Asia and

02:14South America.

02:15Johannes Bleschberger, CGTN, Vienna.

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