Policy Brief: The Trade Dispute Between the EU and the USA. Complete Removal of Tariffs on Cars as a Way Out of the Conflict?

This Policy Brief discusses the recent developments in the trade dispute between the European Union and the USA. Details on the trade policy framework relevant for understanding this dispute and Austria's trade relationship with the USA are followed by a model-based simulation of the potential employment effects of a complete removal of tariffs on cars among the USA, EU, China, Japan, and South Korea. The estimations reveal positive employment effects throughout for all involved economies. The Policy Brief concludes by offering some policy recommendations based on the simulation results.