US car tariffs can threaten up to 25,000 jobs in the Czech Republic, the association warns
Possible US customs on the automotive sector would potentially endanger up to a fifth of Czech exports in the automotive industry and up to 25,000 jobs. The CEO of the Automotive Industry Association Zdeněk Petzl informed about it. According to Deloitte chief economist David Marek, the risk of introducing a 25 percent duty on exports of cars and their parts from the EU to the US would mean a fall in automotive industry revenues of about CZK 12 billion a year.
Petzl pointed out that Germany is the largest trading partner of the Czech Republic, where parts are exported for about 185 billion crowns, which corresponds to approximately 20 percent of exports in the automotive industry. "These parts usually end up in German cars, which are - especially in the premium category - Germany's main export to the US, with the US being Germany's largest trading partner. Thus, as much as one fifth of Czech exports in our sector are threatened, and up to 25,000 jobs are estimated, ”he said.
Marek added that the Czech Republic would be the fourth most affected country in Europe after Germany, Sweden and Slovakia. “Despite the fact that cars from the Czech Republic are hardly exported from the US, unlike Slovakia, losses through subcontracting parts to automakers in other European countries would reach about 0.1 percent of GDP annually, similar to Slovakia. At the revenue level, this means a decrease of about $ 12 billion a year. Such would be the Trump's trade war price with Europe for the Czech Republic, ”he said...
Source:lidovky.cz...
