Central Europe is “completely vulnerable” to the impacts of the US trade policy overhaul.
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| Central Europe fears double impact from new US trade policy. (Source: Reuters) |
A forecast by global financial services firm Nomura shows that Germany will be hit harder than other members of the Eurozone if President-elect Trump follows through on his promise to raise tariffs.
This will have a ripple effect across Central Europe due to the extensive trade ties between the countries.
In particular, the automotive industry will be strongly affected, because about 20% to 30% of exports from countries in this region go to Germany.
According to Mr. Andras Savos, President of the German-Hungarian Chamber of Commerce and Industry, if President-elect Donald Trump fulfills his commitment to impose tariffs on imports from Europe, Hungary will be strongly affected due to its close trade relations with Germany.
"If Europe's leading economy is affected, the impact on Hungary will be multiplied," said Mr. Savos, adding that planned investments in Budapest were falling surprisingly sharply.
Central Europe is “entirely vulnerable” to the impact of the US trade policy overhaul, economists at ING said.
ING said: “The risk lies in the trade link with Germany and the dependence on the automotive industry.”
Data from the European Statistical Office (Eurostat) shows that German car exports to the US will reach 23.41 billion euros in 2023, compared to 18.92 billion euros in exports from Poland, Romania, the Czech Republic, Slovakia and Hungary to Germany in the same period.
Source: https://baoquocte.vn/khong-chi-duc-hungary-cung-dang-lo-lang-ve-ong-trump-trung-au-chiu-tac-dong-lan-toa-293797.html
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