28/7/2025 |Articles are machine translated
The Automotive Industry Association welcomes the conclusion of a new tariff agreement between the European Union and the United States as a step towards de-escalating trade tensions that have created uncertainty on both sides of the Atlantic in recent months. While the 15% tariff on cars and car parts cannot be considered low, we welcome the fact that the threat of further escalation has been averted and that a certain degree of legal predictability has been restored.
“The agreement brings much-needed stability to transatlantic relations, but its specific wording and implementation will be key. We are therefore now waiting with great attention for the detailed conditions,” said Zdeněk Petzl, executive director of the Association of the Automotive Industry.
The US is not a major direct export market for the Czech automotive industry – in 2023, only 0.8% of domestic automotive exports worth CZK 9.3 billion went to the US, and the exports do not include finished vehicles. The impacts of the new agreement will therefore be largely mediated, particularly through the export of components to Germany, which accounts for 30% of exports and is thus the main customer of Czech production and a significant exporter of finished vehicles to the US. In this context, it is important that the EU and the US declare their willingness to continue removing trade barriers and strengthening strategic partnerships.
“We welcome any step that contributes to predictability in global trade. However, we recall that a 15% tariff represents a price increase for American consumers, which could potentially lead to a reduction in European vehicle sales. At the same time, it is one of the additional pressures to move vehicle production out of the EU at a time when the European automotive industry is dealing with transformation, high input costs and uncertainty in key markets,” Petzl added.
The association will continue to monitor the negotiation of the details of the agreement and pay increased attention to its impact on the subcontracting chain throughout the EU, including the Czech Republic.
