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July 6, 2018 www.intellinews.com I Page 9
themselves but also the upstream industries and countries are affected,” says wiiw’s report.
“For [a] group of countries which are strongly integrated in the German value chains – Hungary, Slovak Republic, Czech Republic, Poland, Aus- tria – one finds that the indirect value added due to production networks are particularly strong. Consequently, the announced tariffs on US im- ports on cars of 25% would impact negatively on exports and therefore on income in all parts of the world, but particularly on countries specialised in the transport industry either by being exporters or integrated in the global production networks.”
Other countries to be affected include Romania, where the likes of German premium car parts
manufacturer Dräxlmaier have operations, and Slovenia.
The opening of a trade war with a hike in car import tariffs would also destroy jobs in exporting countries.
In the EU more than 600,000 jobs depend on exports to the US, with numbers in individual countries ranging 300,000 in Germany to 70,000 in Italy, 50,000 in the UK and 40,000 in Poland. “For the countries strongly integrated in the German supply chain the number of jobs is around 25,000 for Czech Republic and Hungary, about 16,000 in Austria and 12,000 in the Slovak Republic,” says wiiw’s report.