Eastern European auto sector faces tariff uncertainty

Significance His proposed 10% baseline tariff on European car exports could deliver a disproportionately severe blow to the manufacturing corridor between Germany and the Visegrad Four (V4) states of Poland, Czechia, Slovakia and Hungary, which already fears that Beijing will retaliate against EU tariffs imposed on Chinese electric vehicle (EV) imports. Impacts With its more diversified economy, Poland could emerge relatively unscathed from US tariffs. European carmakers may need to invest in specialisation in new automotive segments such as high-end EVs and autonomous driving. If Trump cuts green subsidies, the EU may become more attractive for investment, with the dollar’s strength increasing its competitiveness.