Trump’s planned 25% auto tariffs may hit Czech supply chains

A planned increase in US tariffs on car imports from the European Union to 25 percent, announced by US President Donald Trump, is unlikely to threaten direct Czech vehicle exports to the United States, according to EY automotive expert Petr Knap. However, it could hurt supply chains. Knap said the move would further limit exports to the United States by German carmakers, to whom Czech firms supply components worth billions of crowns.

President Trump said he intends to raise tariffs next week because, in his view, the EU has failed to honour a previously agreed trade deal.

Last summer, Trump and European Commission President Ursula von der Leyen agreed in principle on a 15 percent tariff ceiling for most EU exports to the United States.