Why Slovakia could be hardly affected by American automobile tasks

The prices of US President Donald Trump on automotive imports are expected to hit the world’s brands and countries around the world hardly, economists warning a little landlocked nation in Europe could feel the worst impact.

Trump is about to unveil the details of his last series of scanning prices around 9 p.m. London time (4 p.m.) on Wednesday. The measures, which are distinct from Washington’s samples from the world automotive sector, seem designed to rebalance the economic order in favor of America.

Trump has already announced a 25% rate on all imported vehicles, with costs on companies that import vehicles in effect on Thursday. The White House said that a tax for car parts should start in May.

The Prices’ back and forth announcements have alarmed global investors, business leaders and American trading partners in recent months. Germany has criticized car rates of 25% of Trump as bad news for the United States, the European Union and the world trade.

Inga Fechner and Rico Luman, Dutch Bank Ing economists, said that Germany is more exposed to car prices of 25% of Trump in terms of value, Slovakia can feel the greatest impact.

“The German automotive industry is in the eye of the storm and far the most exposed in terms of value, with major actors such as Volkswagen,, Bmw,, MercedesAnd Porsche It is likely that prices are likely affected, “said ING in a research note published on March 28.

“But Slovakia – which houses several car factories – is the most exposed in terms of total American export volume,” they added.

Nicknamed “Detroit of Europe” because of its flourishing automotive industry, Slovakia produces more cars per capita than any other country in the world.

The nation of only 5.4 million people relies strongly on American trade, with cars representing a large part of its American exports and the sector indirectly employing more than 250,000 people.

Luman d’Ing said that there had been a frontage of car expeditions to the United States before Trump automotive prices and that “it will relax” after the measures are imposed.

“The supply chains will not be immediately redirected and redirected in the midst of a strong uncertainty for investors, but if it holds a certain time, production will begin to move to the United States,” Luman told CNBC by e-mail on Wednesday.

On the other hand, Luman said that Slovakia still has relatively low production costs because local wages are significantly lower than those of Germany.

“So, VW and Stelllantis will probably seek to maintain the occupancy rates of their factories in Slovakia (for ice models) and as such, the export setback could also weigh on production elsewhere in Europe, which will be replaced, “said Luman.

Vladimir Vaňo, chief economist of Globsec, a reflection group based in the capital of Bratislava de Slovakia, previously described the prospect of Trump’s prices as “disturbing” for Slovakia, while suggesting that there seemed to be “very little” that the country could do in the short term.

A Slovak government spokesperson was not immediately available to comment.

Slovakia is the largest exporter of passenger cars in Europe in the United States, alongside Sweden, with 4 billion euros ($ 4.3 billion) in the United States in 2023, according to ING.

In particular, ING said that more than 73% of Slovakia total exports to the United States consist of car and cars, leaving the country exposed in Trump prices.