On March 26, President Donald Trump announced that the United States would levy a 25 percent tariff on all vehicles assembled in foreign countries, beginning on April 2. He further announced that the tariff would be extended in May to include key components used in domestic production, such as engines, transmissions, and batteries.
While countries like Japan, South Korea, and Germany are obvious allies that are negatively affected by the tariffs, Slovakia—dubbed the "Detroit of Europe"—also stands to suffer substantial economic losses.
Slovakia has a population of just 5.4 million, yet it is one of Europe's leading car manufacturers, heavily reliant on auto production and exports to the U.S. Home to five major car manufacturers and more than 350 local suppliers, Slovakia is not only the second-largest E.U. exporter of vehicles to the U.S., but also the biggest car producer per capita in the world.
