US tariffs on car parts will hit Czech industry only indirectly

New 25-percent tariffs imposed by the United States on imported car parts are expected to affect Czech producers only indirectly. Less than one percent of Czech car parts exports go directly to the US market, which makes it a relatively minor trade partner. Still, the tariffs will increase costs by roughly two billion crowns annually for the parts that are exported directly. According to expert Petr Knap from EY, the long-term impact could be more significant. European automakers may shift investments and production intended for the US market to North America, bypassing suppliers in Central Europe.