Slovakia’s economy faces severe disruption after the US announced 25% tariffs on all foreign-made cars, with officials warning the country could lose €3 billion and 20,000 jobs by 2027, according to The Slovak Spectator.
As the world’s largest car producer per capita, Slovakia’s export-driven automotive sector is uniquely vulnerable to the measures, which threaten to erase nearly all projected economic growth for 2026.
Economy Minister Denisa Saková confirmed Slovakia will be among the top three hardest-hit EU nations, urging a postponement like those granted to Mexico and China.
We still hope that the tariffs will be postponed somehow – just like in the case of Mexico and China. If they are not postponed, we will have to deal with it somehow.
Saková also stressed that she counted on EU Trade Commissioner Maroš Šefčovič to negotiate retaliatory measures or exemptions. Šefčovič is scheduled to meet US officials in Washington to address the tariffs.
The automotive industry accounts for 2.5 per cent of Slovakia’s GDP, compared to the EU average of 0.3 per cent, and employs 200,000 people. Plants such as Volkswagen Bratislava, which exports 25 per cent of production to the US, and Jaguar Land Rover face immediate risks.
The country of 5.4 million people produced 1 million cars in 2024, with Volvo set to open a new plant soon.
As a result of the US-imposed duties on the industry, The National Bank of Slovakia forecasts a 1.6-per-cent decline in growth in 2026, leading to a 2.7-per-cent (€3 billion) decline in GDP by 2027. Moreover, up to 20,000 jobs may disappear, primarily in manufacturing and supply chains.
