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Skoda Kodiaq Automobiles at the production line at the Volkswagen AG plant in Bratislava, Slovakia, on Friday, December 1, 2023.
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US president Donald TrumpCar import tariffs are expected to be hard to achieve for brands and car countries around the world, with economists warning that a small nation in Europe may feel the worst of the impact.
Trump is disguised To reveal the details of his last round of extensive tariffs around 9:00 pm London (16:00 ET) on Wednesday. The measures that are separate from those of Washington Levies in the world automotive sectorThey appear to be designed to balance the economic order for the benefit of America.
Trump already has declared 25% tariff for all imported vehicles, with fees for enterprises paying vehicles that enter into force on Thursday. The White House said the car tax tax should start in May.
In recent months, President’s President for Tariff President has worked on global investors, corporate executives and trading partners in the United States. Germany stuck 25% Trump’s car rates are bad news for the US, the European Union and Global Trade.
Inga Fenchner and Rico Luman, economists at the Dutch Bank, said, although Germany is most exposed to Trump’s 25% car raniffs in terms of value, it is Slovakia that may feel the most impact.
“The German automotive industries is in the eyes of the storm and far the most exposed in terms of value as the main players such as Volkswagen., BMW., Mercedesand Porsche It is likely to be affected by the tariffs, “Ing said in a research note published on March 28.
“But Slovakia – the home of several car factories – is the most exposed in terms of the total volume of US exports,” they added.
CalledDetroit from Europe“Due to its thriving automotive industry, Slovakia produce More cars per capita than any other country in the world.
The nation of only 5.4 million people relies largely on trade in the United States, with cars representing a significant portion of US and sector indirectly hiring More than 250,000 people.
Production may start to transfer to the US
Ing’s Luman said there was a need for car shipments to the United States before Trump’s car rates and that “this will relax” after the measures are imposed.
“Delivery chains will not be immediately redirected and reworked against the background of high insecurity for investors, but if it remains for some time that production will start transferring to the US,” Luman told CNBC by email on Wednesday.
On the other hand, Luman said Slovakia still has relatively low production costs, as local salaries are significantly lower than in Germany.
“So, vw and Stellantis They will probably strive to maintain the percentage of occupation of their factories in Slovakia (for ice models) and as such an export failure can also weigh on production in Europe elsewhere, which will be replaced, “Luman said.
National flags of Germany, left, Slovakia, center and flag, including the VW logo in front of the Volkswagen AG plant in Bratislava, Slovakia, on Friday, December 1, 2023.
Bloomberg | Bloomberg | Ghetto images
Vladimir Vaňo, Chief Economist at Globsec, a cerebral tank with headquarters in the capital of Slovakia in Bratislava, had previously had described Trump’s prospect as a “disturbing” for Slovakia, while suggesting that it seems that “very little” that the country can make in the short term.
A spokesman for the Slovak government was not available for comment immediately.
Slovakia is a joint -largest exporter of passenger cars in the United States in the United States, along with Sweden, with $ 4 billion ($ 4.3 billion), US exports in 2023, according to Ing.
More special, ing said More than 73% of Slovakia’s total exports to the United States consist of car and cars, leaving the country sharp at Trump’s tariffs.
