Slovak PM Fico not optimistic about EU-US tariff deal: Impacts could be significant

Slovak Prime Minister Robert Fico has expressed concerns about the European Union (EU) negotiations with the US on new tariffs. In his words, he is not very optimistic about reaching a favourable agreement, which should be concluded by 9 July. This situation could have serious consequences for the Slovak car industry, which is a key pillar of the country's economy.

Possible impact of US tariffs on Slovakia

"I'm not very optimistic. The [US tariffs] could have a huge [negative] impact on automotive products [in EU countries] and related production in Slovakia," Fico told reporters.

Slovakia is one of the largest car manufacturers in Europe and hosts plants of world leading car companies such as Volkswagen, Kia and Stellantis. A significant part of the production of these factories goes to the US market, making potential tariffs from the US a threat to the country's economy.

The automotive industry accounts for approximately 10 % of Slovakia's gross domestic product (GDP) and employs tens of thousands of people. Any reduction in exports could lead to reduced production, job losses and economic difficulties in the regions where the factories are located, such as Bratislava, Trnava or Žilina.

Key date: 9 July

According to Prime Minister Fico, the EU-US tariff agreement should be concluded by 9 July 2025 at the latest. The negotiations are crucial not only for Slovakia, but for the entire EU, which is trying to minimise the economic impact of the new trade barriers.

Fico announced that a special cabinet meeting will be held on 4 July to analyse the impact of US tariffs on the national automotive industry and to prepare possible countermeasures.

Slovakia at the heart of the European automotive industry

Slovakia has earned its position as one of the largest car manufacturers per capita in the world. The country produces around one million cars a year, making it an important player in the global market. Key factories include Volkswagen Slovakia (Bratislava), Kia Motors (Žilina) and Jaguar Land Rover (Nitra). Production is focused not only on the European market, but also on the American market, which is strategically important for Slovak automakers.

TASS/gnews.cz - GH