COPENHAGEN

Czech Prime Minister Petr Fiala cautioned on Wednesday that Europe must brace for a potential surge of inexpensive Chinese goods following the US tariff hikes, Radio Prague International reported.

Speaking after a Cabinet discussion on the repercussions of the Trump administration's trade measures, Fiala stressed the urgency for the EU to secure a tariff agreement with the US.

“Should negotiations falter, the EU must enact robust countermeasures,” Fiala asserted. He advocated for dismantling internal market obstacles and diversifying the bloc's economic partnerships.

To safeguard Czech businesses, Fiala announced intensified economic diplomacy efforts and the creation of a dedicated working group.

Meanwhile, Finance Minister Zbynek Stanjura downplayed the immediate inflation risk in the Czech Republic due to the US tariffs, projecting no impact on anticipated real wage growth this year. However, the finance ministry previously estimated a potential 0.6 to 0.7 percentage point slowdown in Czech economic growth as a result of these tariffs.

Czech President Petr Pavel earlier voiced concern about Washington's unilateral decision to introduce sweeping tariffs warning that the US global tariff policy poses a serious threat to the stability of the world economy.

ANO political party leader Andrej Babis, who is perceived as one of Trump’s supporters in Czechia, called Trump’s tariff policy “insane.”

The US tariffs now affect €380 billion ($416.8 billion) worth of EU exports -- around 70% of the total -- with duties ranging from 20% to over 25%.