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BMW CEO proposes cutting EU tariff on US vehicle imports to 2.5%
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BMW CEO proposes cutting EU tariff on US vehicle imports to 2.5%
Jan 28, 2025 9:21 AM

BERLIN, Jan 28 (Reuters) - BMW will propose

this week that the European Union lower its tariff on U.S. car

imports to 2.5% from 10%, in line with the current U.S. import

tariff, the German automaker's CEO Oliver Zipse said on Tuesday.

New U.S. President Donald Trump has threatened to impose or

raise tariffs on a range of products and regions, including the

EU, sparking efforts by many foreign policymakers and companies

to persuade him otherwise.

Zipse, speaking at a conference in Berlin organised by

German publication "Die Welt", did not expand on whether his

proposed lowered tariff should apply to all car imports.

His comments come after Ola Kaellenius, chief executive of

Mercedes-Benz and new president of Europe's auto

association ACEA, said this month that the EU should seek a

"grand bargain" with Trump to avoid a trade war.

The European Commission will host European automakers,

suppliers and trade unions for a first round of talks on Jan. 30

on the future of Europe's car industry, as companies announce

plant closures and major layoffs in the face of weak demand,

high costs, and competition from China.

Trump did not immediately implement the wide range of

tariffs he had promised, but has said they are still an option.

Zipse previously played down worries over the impact of

potential import tariffs under a Trump presidency on BMW, saying

its large production footprint in the U.S. could even give it an

advantage.

"Our balanced global setup makes us resilient and

competitive. Nevertheless, free trade is of immense importance

worldwide... That is why we should be discussing fewer rather

than more trade barriers," Zipse said.

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