U.S.–EU tariff deal seen as the least damaging option, say Czech exporters

The recently announced 15% U.S. tariff on most European Union goods is “the maximum possible under current conditions,” said Otto Daněk, vice-chair of the Czech Exporters’ Association. While not ideal, the agreement is seen as a positive sign that brings predictability to transatlantic trade and may calm markets. Daněk warned, however, that the impact of the tariffs remains to be assessed. Some Czech firms are already relocating production to the U.S., reportedly in line with President Trump’s goal to shift manufacturing onto American soil. Daněk noted that a previously proposed 30% tariff would have been tantamount to an embargo. The U.S. and EU struck the deal just days before a threatened escalation. The move is expected to indirectly affect Czech exporters via Germany — their largest trade partner — which is highly exposed to the U.S. market.