U.S. tariffs would slow Czech economic growth by 0.4 pp in 2025: ministry
Economic growth would thus reach 1.6 percent this year, and 1.3 percent in 2026, according to an estimate by the ministry.
U.S. President Donald Trump announced on Saturday that his country will impose a 30-percent tariff on imports of goods from the EU as of Aug. 1.
According to Finance Minister Zbynek Stanjura, exports to the United States account for less than 3 percent of the Czech Republic's total exports. However, the country would also be indirectly affected through its European partners who purchase Czech goods and components.
"Up to 20 percent of EU exports head to the United States annually, and demand for these exports would decline due to the price increase after the tariffs are introduced," Stanjura said on social media platform X.
"The negative impact of the tariffs will certainly not be immediate, and there is still room for European leaders to find a solution with the U.S. administration that avoids a lose-lose outcome like a trade war," he added.
Czech Prime Minister Petr Fiala told reporters on Monday that the impact of tariffs on the Czech economy could be several tenths of a percent of gross domestic product, depending on their specific form.
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