The tariffs on imports of goods to the USA may also impact Czech engineering companies

Prague – The introduction of a basic ten percent tariff on the import of all goods into the USA and the subsequent reciprocal tariff on goods from the European Union, which American President Donald Trump postponed for 90 days on Wednesday, could have a significant impact on Czech engineering companies. It could particularly affect manufacturers of machining and forming machines. This was stated by the spokesperson of the Association of Engineering Technology Blanka Markovičová. The association did not believe that the current form of tariffs would last long before Trump’s turnaround and anticipated that there would be a relaxation of the set measures in the near future.

“The USA has long been one of the key non-European markets for Czech engineering exports. The most frequently exported products include highly specialized machining machines, automation solutions, and components with high added value. These products have earned their position in the American market due to their quality and technological advancement,” said Markovičová.

According to the association, the introduction of tariffs will not only burden European exporters but will also significantly increase costs for American companies that purchase this equipment. “Given that the American industry, with few exceptions, practically does not manufacture machining machines, local companies will have to bear the increased costs themselves. This could negatively affect their investment decisions, modernization of production, and competitiveness on a global scale,” added Markovičová.

Some Czech companies are considering how to respond to the tariffs. Options could include assembly in the American market or closer cooperation with local partners. However, the association does not expect that machine production will be mass-moved to the USA. Such relocations are demanding and only make sense in a long-term predictable business environment, he noted. (April 10)