Central Europe’s Export Dependency and Responses to Trump’s Tariffs
/Article


In Prague and Budapest, leaders of the Czech Republic, Poland, and Hungary expressed concerns about new U.S. tariffs and discussed possible retaliatory measures amid tensions over a potential trade war. Central European countries heavily rely on trade, with Slovakia's goods exports accounting for 76.6% of its output, while Poland's share is 39.4%, both exceeding the EU average of 34.2%.

European Commission President Ursula von der Leyen criticized U.S. President Donald Trump's tariffs, hinting at EU countermeasures if negotiations fail. The announcement of tariffs by Trump led to stock market and currency fluctuations in central Europe, particularly affecting the Czech crown.

Leaders like Czech Prime Minister Petr Fiala and Polish Prime Minister Donald Tusk emphasized the importance of negotiation and the potential economic impacts. The automotive sector in central Europe, which has strong ties to Germany, stands out as a key area at risk from these tariffs. The Czech Automotive Industry Association raised concerns about the impact on Czech suppliers. Economists at Erste Group projected significant negative economic effects on Slovakia due to the tariffs over the next three years.

Leave a Reply