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Balkan Insight | Central European Leaders Caught in the Headlights as Car Industry Faces Huge US Tariffs

With the July 9 deadline looming, the EU is working flat out to negotiate a trade deal with the US. Yet reactions from those expected to be among the hardest hit – Slovakia, Hungary and Czechia – have been muted, confused and often unhelpful. Filip Křenek, an analyst at Institute for European Policy EUROPEUM, commented on the situation for Balkan Insight.

In the Media

17. June 2025

The first wave of US tariffs on cars that came into force at the beginning of April should have a minimal impact on the Czech industry. The second wave [import duties on car parts in effect since early May] could have a much broader impact, however.

Czech manufacturers will have to renegotiate supply contracts for the long term. This takes time, more time than simply changing the price tag of a final car for consumers.

Companies are waiting to see how the situation evolves and cannot plan ahead because of the uncertainty. This is already having a very real impact.

The state of the Czech automotive industry will surely be an election campaign topic. But it will probably focus more broadly on the loss of competitiveness and Green Deal-related measures – tariffs will only be part of that discussion.

Read the full article here.