Automakers operating in Slovakia already feel the negative impact of new American duties on imports of cars into the United States of America when they recorded a decline in orders on the third quarter, she said on Friday after an extraordinary government meeting Minister of Economy Denisa Saková (Voice-SD). According to her, specific numbers are not yet known and may also be the subject of business secrets.
A major outage of exports to the US concerns two car manufacturers in Slovakia, and that Volkswagen and Jaguar Land Rover. “We have the latest information that the third production quarter is already a decline in orders for vehicles of the two companies and it is already beginning to show negatively,” Sakova approached. According to her, the government is trying to open new markets for these companies where they could place their production.
It is also waiting for the outcome of the negotiations between the EU and the US, which is led by the European Commissioner responsible for trade and economic security, Maroš Šefčovič. However, according to the current information, they have not yet moved anywhere, Sakova pointed out. Currently, valid car import duties to the US are 27.5 %, with 2.5 % in the past and 25 % are announced by Donald Trump’s new US administration. If there was no agreement, the EU has prepared retaliatory measures to impose on imports from the United Statesthe Minister announced.
In connection with the fear of a possible transfer of car production directly to the US, the Minister pointed out that it is not easy or fast. “The transfer of these investments is the medium and long -term process. We cannot imagine moving some car production in one or two years,” She stressed that, according to experience in Slovakia, this is a process that can take 4 to 6 years.
Sakova reminded that According to data from the National Bank of Slovakia, the new customs policy of the USA means an impact on the level of approximately 2.9 % of gross domestic product (GDP), two thirds of which are directly affected by the automotive industry. The United States is the second most important market for Slovak automakers, where they export more than 10 % of their production. The two most affected companies export 20 to 25 % of the total volume of cars to the US market.
