Bratislava – Should the United States, under President Donald Trump, proceed with trade measures against the European Union, Slovakia stands to be the most significantly impacted nation. The automotive sector is anticipated to face severe repercussions, potentially incurring losses of up to 300 million euros annually if tariffs are increased. This warning was issued on Monday by the Association of Industrial Unions and Transport (APZD), which also highlighted the risk of job losses within the domestic economy, as reported by TASR.
“If Donald Trump enforces trade tariffs on the EU, Slovak businesses will confront a steep rise in their product costs, leading to diminished sales in the American market and putting hundreds of jobs at risk in Slovakia. Should a 10% tariff be applied to European cars, Slovak vehicles will become pricier in the US, likely resulting in a sales decline of 6% to 9%. This alone could result in a loss of exports ranging from 150 million to 300 million euros annually,” stated APZD’s general secretary, Andrej Lasz, following the announcement of tariffs on Canada, Mexico, and China last week.
Experts suggest that a decrease in demand for domestic automotive products could endanger thousands of jobs. Lasz noted that car manufacturers and their suppliers are vital employers, particularly in Slovakia’s less developed regions. If exports are hindered by tariffs, production workers would be the first to feel the impact. He estimated that a 4% drop in exports could elevate overall unemployment in Slovakia by 0.2 to 0.5 percentage points.
The association projected that if the trade conflict between the EU and the USA escalates, Slovak exports could diminish by as much as 4.4 billion euros by the end of 2029.
Additionally, the US withdrawal from the Paris Climate Agreement, which the EU supports, means American companies are not bound by stringent emission standards, allowing them to produce at a lower cost.
“European manufacturers are expected to face a double disadvantage. Their products will be hit with higher prices in the American market due to tariffs, while simultaneously contending with domestic competitors that have more flexibility to lower production costs. The outlook for the European industry appears increasingly challenging,” Lasz added.
This concern was echoed last week by Slovak Finance Minister Ladislav Kamenický (Smer-SD): “Cars dominate Slovakia’s exports to the USA. We exported goods worth around 4.5 billion euros to the US, with 90% being machinery and automobiles. Among the V4 countries, Slovakia has the highest export share to the United States, accounting for 5.8%. Therefore, the imposition of tariffs by the USA is of great significance.” (3rd February)
“European manufacturers are expected to face a double disadvantage. Their products will be hit with higher prices in the American market due to tariffs, while simultaneously contending with domestic competitors that have more flexibility to lower production costs. The outlook for the European industry appears increasingly challenging.” Andrej Lasz
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