BMW boss Zipse warns of the trade war: EU tariffs brake innovation!

BMW boss Zipse warns of the trade war: EU tariffs brake innovation!

Spartanburg, South Carolina, USA - Violent waves is currently the EU economic policy, especially in the automotive industry. Oliver Zipse, the CEO of BMW, sees the announced regulations as a "disaster" and urges the USA and China to warn against a new trade war. As reports merkur.de, ZIPSE, in particular, consider the planned tariffs on electric car imports from almost 31% as harmful to European industry and Hindle for the innovative strength of local manufacturers. In a conversation about the ban on combustion engines provided for 2035, he urges technological openness, since he sees the exclusive focus on electric cars as dangerous for the industry.

"The EU ignores that we are acting globally," Zipse continues and advocates trade in trade with the USA and China for pragmatic solutions. However, it is optimistic in the ongoing customs negotiations with the United States. His BMW plant in Spartanburg, South Carolina, produces around 430,000 vehicles every year that are sold on the US market. Here are the signs of cooperation - even if the concerns about the possible EU retribution duties against the United States and the impending customs spiral.

trade conflict in the global context

The Situation is additionally fueled by US President Donald Trump by the aggressive customs policy. [Zdf.de] (https://www.zdfheute.de/politik/trump-usa-zoelle-eu-eu- against 100.html) reports of Trump's announcements of collecting tariffs from 20% to all EU imports, which in particular would hit Germany hard. These threats could result in another trade war. Ursula von der Leyen, the President of the EU Commission, has already signaled her willingness to take negotiations with the United States to reduce trade barriers. If this fails, the EU will not hesitate to also take countermeasures in the form of tariffs on US products.

The trade conflict could tighten quickly. On April 2, 2025, Trump already introduced tariffs from 10% to goods imports from over 180 countries, with the impending view of increases to up to 50% for the EU. As explained SWP, there are several scenarios for the course of the conflict: from a quick agreement to a complete trade war that could damage the economic relationships.

The reaction of the EU

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

ZIPSE appeals to the need for international cooperation and fair markets, while the EU tries to establish new trading partnerships outside the USA, for example by agreement with Mercosur countries and India. The coming time will show whether the European countries will be able to successfully free themselves from the claws of this customs policy.