BMW CEO proposes cutting EU tariff on US vehicle imports to 2.5%

29 January 2025 - 09:23 By Reuters
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Zipse previously played down worries over the impact of potential import tariffs under a Trump presidency on BMW, saying its large production footprint in the US could even give it an advantage.
Zipse previously played down worries over the impact of potential import tariffs under a Trump presidency on BMW, saying its large production footprint in the US could even give it an advantage.
Image: Supplied

BMW will propose this week that the EU lower its tariff on US car imports to 2.5% from 10%, in line with the US import tariff, the German carmaker's CEO Oliver Zipse said on Tuesday.

New US President Donald Trump has threatened to impose or raise tariffs on a range of products and regions, including the EU, sparking efforts by many foreign policymakers and companies to persuade him otherwise.

Zipse, speaking at a conference in Berlin organised by German publication Die Welt, did not expand on whether his proposed lowered tariff should apply to all car imports.

His comments come after Ola Kaellenius, CEO of Mercedes-Benz and new president of Europe's auto association ACEA, said this month the EU should seek a “grand bargain” with Trump to avoid a trade war.

The European Commission will host European carmakers, suppliers and trade unions for a first round of talks on January 30 on the future of Europe's car industry, as companies announce plant closures and major layoffs in the face of weak demand, high costs and competition from China.

Trump did not immediately implement the wide range of tariffs he had promised but has said they are still an option.

Zipse previously played down worries about the impact of potential import tariffs under a Trump presidency on BMW, saying its large production footprint in the US could even give it an advantage.

“Our balanced global set-up makes us resilient and competitive. Nevertheless, free trade is of immense importance worldwide. That is why we should be discussing fewer rather than more trade barriers,” Zipse said.


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