BMW CEO Oliver Zipse has been optimistic that the European Union and the U.S. could reach a mutually beneficial trade agreement—though news of President Trump’s decision regarding the EU could throw the German automaker for a loop.
The details: On Friday, Zipse indicated that he is optimistic that the Trump Administration and the EU can come to what he describes as “manageable” terms on the auto tariffs—prior to President Trump sending a letter to the EU on Saturday, notifying the country that the U.S. would be imposing a 30% tariff on goods imported from the European Union.
The new 30% tariff rates for Europe and Mexico are scheduled to take effect on August 1,—as revealed in letters to EU Commission President Ursula von der Leyen and Mexico’s President, Claudia Sheinbaum.
Trump has also indicated that any retaliatory measures taken by the European Union or Mexico to raise its tariffs against the U.S. will be met with an added charge on top of the 30% rate imposed on the countries.
In the letter to the EU, Trump reaffirmed his ongoing position with countries regarding the tariffs—informing the Commission President that the country could avoid the tariffs by building and manufacturing products in the U.S..
What President Trump is saying: “We have had years to discuss our Trading Relationship with the European Union, and have concluded that we must move away from these long-term, large, and persistent, Trade Deficits, engendered by your Tariff, and Non-Tariff, Policies and Trade Barriers. Our relationship has been, unfortunately, far from Reciprocal,” wrote President Trump in a letter to the EU posted on Truth Social.
Why it matters: The EU had hoped to persuade Trump not to impose tariffs on the country, and reconsider the measures. Meanwhile, BMW CEO Zipse has suggested that the automaker could potentially offset imports with exports. However, that was prior to Trump’s Saturday announcement.
Between the lines: A new tariff rate of 30% on imports from the EU could potentially thwart BMW’s plans to offset the tariffs, given the costs associated with the levies and the company’s value of exports out of the U.S.
The value of BMW’s exports out of the U.S. market was more than $10 billion in 2024.
BMW is the largest car exporter in the U.S.—with 225,000 cars exported out of the U.S. in 2024.
“Imposing 30% tariffs on EU exports would disrupt essential transatlantic supply chains, to the detriment of businesses, consumers and patients on both sides of the Atlantic,” said Leyen in a statement on EU and U.S.trade.
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