PRAGUE, April 10 (Xinhua) -- The Czech Ministry of Finance has revised the country's 2025 gross domestic product growth forecast down to 2.0 percent from the previous projection of 2.3 percent in January.

According to the ministry's April macroeconomic forecast released on Thursday, the downward revision is made in view of the new U.S. tariffs on cars and car parts, steel and aluminum.

In addition to sector-specific duties, U.S. President Donald Trump unveiled a new set of levies last week, imposing a 10-percent baseline tariff on all imports and higher rates on certain trading partners, including a 20 percent levy on EU other imports.

The so-called "reciprocal" tariffs have caused global stock markets to tumble and sparked widespread concerns. Despite Trump's announcement on Wednesday of a temporary 90-day pause, concerns about the unpredictability and uncertainty of his policies remain.

The current forecast does not factor in the U.S. "reciprocal" tariffs on the EU. If Trump reintroduces the 20 percent tariffs on the EU in three months, the Czech economy could lose 0.6 to 0.7 percentage points of annual growth, Czech Finance Minister Zbynek Stanjura said Thursday on social media platform X. The Czech economy grew by 1.1 percent in 2024.

Despite external pressures, the Finance Ministry expects economic activity to pick up, driven by robust household consumption, increased investment, and higher public spending. The ministry forecasts the country's economic growth to reach 2.4 percent. Enditem

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