Lipavský: Entrepreneurs appreciated that the EU did not react hysterically to Trump’s tariffs

Prague – Entrepreneurs appreciated that the European Union did not make a hysterical reaction to the tariffs imposed by American President Donald Trump. This was stated today by Foreign Minister Jan Lipavský (independent) after meeting for breakfast with representatives of associations, entrepreneurs abroad, and exporters.

“The breakfast was created as one of the impulses to the trade war initiated by Donald Trump. A working group was established to assess the situation, led by the Ministry of Industry and Trade,” Lipavský said. According to him, the meeting had a very representative composition of significant Czech exporters and entrepreneurs abroad. “Today, it is no longer just about exporting goods abroad. We are seeing year-on-year growth in service exports, and the amount of Czech capital invested abroad is also increasing,” he noted.

“The key point is that they agreed it is good that the European Union did not make any hysterical reaction that would have escalated the situation, but rather that we have a very calm approach to the whole matter and are trying to negotiate with the United States,” Lipavský remarked. He considers this approach correct, especially in light of the negotiations between China and the USA, which led to an agreement on a significant reduction of additional tariffs and the suspension of the collection of most of them. “The USA represents an important market for our exports with a volume of 190 billion crowns. However, the new American tariffs could cost us up to 0.7 percent of the gross domestic product (GDP),” Lipavský warned.

The minister stated that Czech economic diplomats, of whom there are about 110 in various countries, are also responsible for export support worldwide. “In 2024, they organized over 290 events to support exports,” he noted. Exports are a key pillar of the Czech economy, accounting for nearly four-fifths of GDP. Last year, according to the minister, exports to non-EU countries grew more than eight times faster than to the union. Nevertheless, the Czech Republic still exports about 80 percent to the EU, with nearly a third going to Germany. “We support the growth of exports to America, Asia, and Africa,” added the head of diplomacy. (May 14)