Jamie Spencer
Small EU nation seen as most vulnerable to sweeping import duties
U.S. President Donald Trump’s latest round of auto import tariffs is expected to cause global disruption, with analysts warning that Slovakia could emerge as the hardest-hit nation relative to its export volume.
Trump is scheduled to reveal the full scope of the new tariffs on Wednesday at 4 p.m. ET (9 p.m. London time). The White House has already announced a 25% tariff on all imported vehicles, with auto parts tariffs set to follow in May. These measures are intended to rebalance trade in America’s favor but have sparked alarm among investors and governments worldwide.
Slovakia in the crosshairs
While Germany’s auto giants like Volkswagen, BMW, Mercedes, and Porsche are most exposed in absolute value, economists at Dutch bank ING argue that Slovakia faces the most severe impact in relative terms.
“Germany’s car industry is in the eye of the storm and by far most exposed in terms of value,” ING economists Inga Fechner and Rico Luman wrote in a research note. “But Slovakia – home to several car plants – is most exposed in terms of total U.S. export volume.”
Slovakia, a landlocked nation of just 5.4 million people, has become a European manufacturing hub, with car exports making up a significant share of its GDP. The country hosts major automotive facilities for Volkswagen, Kia, Stellantis, and Jaguar Land Rover.
Broader fallout feared
Trump’s tariff moves are unsettling global supply chains, especially in the European Union, which relies heavily on automotive exports to the U.S. Germany has condemned the new tariffs, calling them damaging to both sides and a threat to global trade stability.
“These tariffs are bad news for the U.S., bad news for the EU, and bad news for the global economy,” a German government spokesperson said on Tuesday.
The uncertainty created by Trump’s escalating trade measures is also fueling market volatility and prompting multinational companies to reassess their U.S. strategies. Analysts warn the retaliatory cycle of tariffs and countermeasures could further stifle global economic growth.
