PRAGUE, Feb. 4 (Xinhua) -- Uncertainty over the trade policies of the new American administration and the threat of tariffs are affecting strategic decisions by Czech automotive suppliers, a local industry leader said on Tuesday.
Although the United States is not a key export market for the Czech automotive industry, any increase in tariffs would significantly impact some Czech suppliers by limiting their business opportunities, Czech Automotive Industry Association head Zdenek Petzl told the national news agency.
U.S. President Donald Trump has said he will impose tariffs on imports from the European Union (EU).
Since the Czech automotive industry is strongly intertwined with the European market, escalating trade disputes between the U.S. and the EU could have serious economic consequences for both sides, Petzl said. Not only will companies suffer, but also employees and customers on both continents.
Only 0.8 percent of Czech automotive exports worth 9.3 billion crowns (382.3 million U.S. dollars) went to the U.S. in 2023, he said. These were not finished vehicles, but car parts either being exported directly to America or used in cars produced in other European countries, especially Germany.
While the direct impact on the Czech economy would not be significant, the indirect consequences through key trading partners of the Czech automotive sector within the EU would be "much more significant," he added. ■
