Effective tariff rates vary among CEE countries

As we approach the halfway mark of the 90-day period of temporarily reduced reciprocal tariffs, we look at where individual CEE countries stand regarding their actual effective tariff rates (ETRs). Although reciprocal tariffs for EU member countries have been temporarily reduced to 10%, some countries are disproportionately burdened by high sector-specific tariffs. For instance, Slovakia faces the highest ETR in the CEE region at 24%, due to the high share of cars in its exports to the U.S. combined with a 25% tariff rate. This places Slovakia third worldwide in ETRs, following China and Bangladesh, according to the Fitch Monitor of ETRs. On the other hand, Slovenia currently enjoys a low ETR of 2.3%, as special tariffs on pharmaceutical products have not yet been specified. However, if a 25% tariff on pharmaceutical products and electronics were introduced, Slovenias ETR would surge to nearly 23%, the second highest in the CEE. It is important to note that ETRs are relevant only for assessing of the direct impact of new U.S. trade policies. The overall impact on CEE economies will be more significantly influenced by the ETRs of their main trading partners. Therefore, the recent efforts to de-escalate the trade war are seen as very positive.