Trump’s Car Tariffs Could Drive Slovakia Into Russia’s Arms
On March 26, President Donald Trump announced that the United States would levy a 25 percent tariff on all vehicles assembled in foreign countries, beginning on April 2. He further announced that the tariff would be extended in May to include key components used in domestic production, such as engines, transmissions, and batteries.
While countries like Japan, South Korea, and Germany are obvious allies that are negatively affected by the tariffs, Slovakia—dubbed the “Detroit of Europe”—also stands to suffer substantial economic losses.
Slovakia has a population of just 5.4 million, yet it is one of Europe’s leading car manufacturers, heavily reliant on auto production and exports to the U.S. Home to five major car manufacturers and more than 350 local suppliers, Slovakia is not only the second-largest E.U. exporter of vehicles to the U.S., but also the biggest car producer per capita in the world.
Slovakia manufactures and exports higher-end SUVs from brands like Audi, Volkswagen, Porsche, Range Rover, and—starting in 2026—Volvo. With SUVs accounting for 46 percent of total annual auto sales in the U.S., the tariffs are likely to hurt models that are especially popular among American consumers.
According to the National Bank of Slovakia, the Slovak economy “would decrease cumulatively by nearly 3 percent” due to the new tariffs, and “would also mean the loss of 20,000 jobs.” The bank projects that Slovakia’s economy will “suffer the most in 2026, when its growth would barely stay above zero” and that by 2027, the automotive tariffs alone could reduce gross domestic product by 0.3 to 0.5 percentage points. The bank’s governor referred to the prospects of a 25 percent car tariff impact as a “small Armageddon.”
Such an economic downturn could further upset Slovak politicians in a way that undermines U.S. geopolitical interests in Europe. Until the announcement of the auto tariffs, Slovak P
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