U.S. Tariffs Shake Up Central European Economies

The recent imposition of U.S. tariffs on European products could result in Poland incurring losses of approximately 8 billion zlotys ($2.16 billion), as stated by Polish Prime Minister Donald Tusk. This revelation follows the U.S.'s establishment of a trade agreement framework with the European Union, introducing a 15% import tariff on most EU goods.

Tusk highlighted the potential losses facing both transatlantic partners but acknowledged that a rigorous trade agreement is preferable to a 'senseless tariff war.' The tariffs, affecting around one-third of global trade, have a significant impact on countries like Poland that, although not major direct exporters to the U.S., are crucial parts of the EU's supply chain.

Central Europe anticipates notable economic consequences from the tariffs, particularly given their prominence in the export of cars—a key industry affected by the new duties. The Czech finance ministry cautions that these tariffs could decelerate Czech economic growth in the coming years, contributing to broader regional economic strain.

(With inputs from agencies.)