Slovakia, a global leader in car production per capita, is under threat from the economic protectionism of incoming U.S. President Donald Trump. With Trump proposing tariffs of 10% to 20% on imported goods, Slovakia’s automotive-dependent economy could face significant headwinds, jeopardizing its status as a manufacturing hub.
Slovakia has built a thriving car industry since the 1990s, producing more vehicles per capita than any other country. Home to manufacturing plants for Volkswagen, Stellantis, Hyundai’s Kia, Jaguar Land Rover, and soon Volvo, the country’s automotive sector indirectly employs over 250,000 people in a population of just 5.5 million.
Slovakia exported €4 billion worth of passenger cars to the U.S. in 2023, accounting for nearly 74% of its total exports to the U.S. This heavy reliance on auto exports places Slovakia in a precarious position as Trump’s tariffs loom.
Trump’s proposed tariffs include a blanket 10% on all Chinese imports and a 25% tariff on goods from Canada and Mexico. While Europe was not explicitly mentioned in the initial announcement, analysts fear that similar measures targeting European automakers may follow, especially given Trump’s history of criticizing the EU’s trade practices.
The EU has significant exposure to the U.S. market, with Germany leading European car exports to the U.S., valued at €23 billion in 2023. Slovakia, as Europe’s third-largest car exporter to the U.S. alongside Sweden, also faces a steep risk.
Beyond potential tariffs, Slovakia’s auto industry faces broader challenges:
The European Commission, while cautious about commenting on potential tariffs, reiterated the importance of the transatlantic economic relationship. President Ursula von der Leyen emphasized the mutual benefits of EU-U.S. trade, which supports millions of jobs and billions in investment.
