Trade tensions between China and the West have put a dampener on carmakers’ investment decisions and longer-term outlooks, creating a level of uncertainty in the industry, the CEO of digital mapping specialist TomTom said on Friday.

The European Union is pressing ahead with hefty tariffs on China-made electric vehicles, set to be imposed from next month, while the Biden administration in September locked in steep tariff hikes on Chinese imports, including a 100% duty on EVs.

“I think some of our biggest customers are struggling to find their foot and decide on the longer-term planning in this volatile environment,” TomTom CEO Harold Goddijn told Reuters.

TomTom, a location data pioneer that counts Stellantis, Renault and Volkswagen among its clients, develops high-definition self-driving maps that integrate consumer data and advanced driver assistance systems.

“We have a good position in China as well for export products, but it’s difficult to see how this will impact the overall picture,” Goddijn said.

He added TomTom expected the U.S. to be effectively closed, more or less, for imports of Chinese vehicles, while the effect on the European markets was still unclear.

TomTom on Friday reported third-quarter revenue below market expectations largely due to declining demand for new cars.

Goddijn said the weak car sales was a “short-term blip” from which the market would recover, though the auto industry backdrop was more volatile than he had seen in a long time.

He added that 2025 would be an important year for the Dutch firm, as many automakers were expected to make decisions about their new platforms and procurement of new technologies for 2026 and 2027.