This week, BMW’s CEO Oliver Zipse proposed that the European Union reduce its tariffs on U.S. car imports from 10% to 2.5%, matching the current U.S. import tariff. The proposal was reported by Reuters this Tuesday. This move comes amid ongoing concerns about potential U.S. tariffs, as new President Donald Trump had threatened to impose or raise tariffs that could impact transatlantic trade.
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The timing of Zipse’s proposal coincides with the upcoming European Commission talks on the automotive industry’s future, set to commence on January 30. These discussions are critical as European automakers face plant closures and layoffs due to shrinking demand and competition from China.
European Export and Import Landscape
In 2023, Germany dominated the EU’s passenger car export market with exports valued at USD 183.4 billion. Spain (USD 43 billion), Belgium (USD 44.2 billion), Slovakia (USD 34.3 billion), and the Czech Republic (USD 33 billion) also featured prominently among the top exporters. Meanwhile, Germany also led the imports for passenger cars with a value of USD 80.9 billion in 2023, followed by France (USD 47.9 billion), Belgium (USD 44.2 billion), Italy (USD 37.7 billion), and Spain (USD 24.5 billion).
Similarly, the United States emerged as a significant player in the global car export landscape, exporting passenger cars worth USD 26.3 billion in 2023. It was followed by China (USD 16.9 billion) and the United Kingdom (USD 16.3 billion). On the import side, the U.S. imported USD 8.7 billion worth of passenger cars, with Japan (USD 5.9 billion) and China (USD 5.3 billion) also being major importers.
BMW CEO Zipse’s call for reduced tariffs underscores the importance of unhindered trade flow between major economies and the need to mitigate potential disruptions caused by tariff impositions.