BMW will propose that the European Union (EU) reduce its tariffs on car imports from the U.S. from 10% to 2.5%, thus following the example set by the U.S.
The formulation of this proposal by BMW was made by the CEO of the German brand, Oliver Zipse, during a conference in Berlin, Germany, organized by the German publication “Die Welt.” However, Zipse did not clarify whether BMW’s proposal should apply to all car imports.
The BMW proposal became known after the CEO of Mercedes-Benz, Ola Kallenius, who is also the president of the European Automobile Manufacturers Association (ACEA), revealed that the EU should work on a major agreement with the new U.S. administration, led by Donald Trump, to avoid a trade war.
It is worth noting that financial and business service companies have already indicated that they expect the U.S. to impose an additional 10% tax on cars exported from Europe to the U.S.
An increase in tariffs of this nature is seen as punitive, as “it would substantially reduce the profits of European car manufacturers,” according to senior analyst at Moody’s, Ruosha Li, in a note revealed by “Reuters.”
The proposal from the CEO of BMW comes after the German brand, together with Chinese electric vehicle manufacturers, initiated action at the Court of Justice of the European Union (CJEU) to contest the EU tariffs on 100% electric vehicles manufactured in China.
