BMW boss Zipse warns of trade war: EU tariffs are slowing down innovation!

BMW boss Zipse warns of trade war: EU tariffs are slowing down innovation!

EU economic policy is currently making waves, particularly in the automotive industry. Oliver Zipse, the CEO of BMW, sees the announced regulations as a “disaster” and warns urgently of a new trade war with the USA and China. As merkur.de reports, Zipse views the planned tariffs on electric car imports from China of almost 31% in particular as harmful to the European industry and as a hindrance to the innovative strength of local manufacturers. During a discussion about the ban on internal combustion engines planned for 2035, he pushed for technological openness because he sees the exclusive focus on electric cars as dangerous for the industry.

“The EU ignores the fact that we operate globally,” explains Zipse and advocates for pragmatic solutions in trade with the USA and China. However, he is optimistic about the ongoing customs negotiations with the USA. Its BMW factory in Spartanburg, South Carolina, produces around 430,000 vehicles annually that are sold in the US market. The signs point to cooperation here - even if concerns about possible retaliatory tariffs from the EU against the USA and the resulting tariff spiral continue.

Trade conflict in a global context

The situation is further fueled by US President Donald Trump's aggressive tariff policy. ZDF.de reports on Trump's announcements to impose tariffs of 20% on all EU imports, which would hit Germany particularly hard. These threats could lead to another trade war. Ursula von der Leyen, the President of the EU Commission, has already signaled her willingness to start negotiations with the USA to reduce trade barriers. If this fails, the EU will not hesitate to take countermeasures in the form of tariffs on US products.

The trade conflict could quickly worsen. On April 2, 2025, Trump introduced tariffs of 10% on imports of goods from over 180 countries, with the looming prospect of increases of up to 50% for the EU. As SWP explains, there are several scenarios under discussion for the course of the conflict: from a quick agreement to a complete trade war, which could cause lasting damage to economic relations.

The EU's reaction

In this fragile climate, the unity of the EU states is crucial. The EU is already discussing possible countermeasures to counteract the threat of tariff escalation and defend its own economic interests. The option of a coordinated digital tax for US tech companies is also being considered in order to exert economic pressure on Washington.

Zipse appeals for the need for international cooperation and fair markets as the EU seeks to forge new trading partnerships outside the US, for example through agreements with Mercosur countries and India. The coming period will show whether the European states will be able to successfully free themselves from the clutches of this customs policy.