[Source/Observer Network, Pan Yuchen, Liu Huaizhen, Editor/Gao Xin] US President Trump signed a proclamation to impose a 25% tariff on imported cars. According to the document released by the White House, the 25% tariff will apply to imported passenger cars, light trucks, and key automotive components.

The tariff measures for imported passenger cars and light trucks came into effect on April 2, while the tariff on auto parts will take effect on May 3.

American Consumer News and Business Channel (CNBC) reported that under Trump's auto tariff policy, Slovakia, known as the "Detroit of Europe," may be severely impacted.

CNBC cited analysts as saying that in terms of trade volume, Germany is at the center of the storm due to Trump's auto tariff policy, as major automakers such as Volkswagen, BMW, Mercedes-Benz, and Porsche are all German.

"However, Slovakia may suffer the most severe impact," he added.

CNBC

Slovakia is called the "Detroit of Europe" due to its thriving automotive industry. With a total population of 5.4 million, it produced approximately 1 million vehicles in 2024, leading the world in per capita vehicle production.

Currently, four automobile manufacturers have established production bases in Slovakia: Volkswagen, Stellantis, Jaguar Land Rover, and Kia. In addition, a Volvo plant is also set to be established in the country.

According to CNBC data, passenger car exports account for 74% of Slovakia's total exports to the United States, and the automotive industry indirectly employs more than 250,000 people in Slovakia.

Analysts said that some automobile companies have already shipped goods to the U.S. in anticipation of Trump's auto tariffs.

"Supply chains cannot be immediately restructured, and investor uncertainty remains high. However, if the tariff policy persists for some time, production may begin to shift to the U.S.," analysts noted. "On the other hand, production costs in Slovakia remain relatively low, with significantly lower local wages compared to Germany."

Therefore, Volkswagen and Stellantis may maintain production at their Slovakian plants, while factories in other parts of Europe may be replaced.

Vladimir Vaňo, chief economist of the think tank Globsec based in the capital of Slovakia, previously described the prospect of Trump's tariffs as "worrisome" for Slovakia, implying that the country appears "powerless" in the short term.

Data from ING shows that Slovakia is the third-largest passenger car exporter to the U.S. in Europe, tied with Sweden, with an export value of 4 billion euros in 2023.

This article is an exclusive contribution from Observer Network and cannot be reproduced without permission.

Original source: https://www.toutiao.com/article/7489079814796673576/

Disclaimer: The views expressed in this article are those of the author alone, and you are welcome to express your opinions by clicking the "like/dislike" buttons below.