Flanders has buffer to absorb US tariff shock, minister-president says
New US import tariffs could cost the Flemish economy at least 500 million euros per year, writes De Morgen, with potential for even greater losses. However, minister-president Matthias Diependaele insists the region has the economic strength to absorb the shock.
US president Donald Trump has announced a 25 per cent tariff on foreign-made cars and parts, up from the current 2.5 per cent, as well as similar tariffs on steel, aluminium, chemicals, pharmaceuticals and electronics.
These measures, set to take effect on Wednesday - dubbed Liberation Day by Trump - threaten key Flemish industries such as automotive, steel and pharmaceuticals. The automotive sector alone faces an extra 317 million euros in costs, while steel exports could be hit by 175 million euros in additional tariffs.
”We are still a very resilient economy, and there is much we can do to limit the impact”
Diependaele acknowledges the financial strain but refuses to succumb to pessimism. “We are still a very resilient economy, and there is much we can do to limit the impact,” he told Radio 1’s De Ochtend.
The Flanders Investment & Trade agency has set up a task force to support affected businesses, similar to the measures taken during Brexit. Meanwhile, the EU is considering countermeasures, which could further complicate the situation.
Despite the challenges, Diependaele sees an opportunity to diversify trade markets. He says Flanders needs to strengthen its position within the EU’s internal market and explore new export opportunities in Asia and Latin America.
#FlandersNewsService | Flemish minister-president Matthias Diependaele © BELGA PHOTO NICOLAS MAETERLINCK
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