The BMW CEO, Oliver Zipse, has made a compelling case against the imposition of punitive tariffs on Chinese electric vehicles. He emphasizes that the potential damage these tariffs could inflict on the German automotive industry far outweighs any perceived benefits. Zipse urges the federal government to reject such measures, warning that they may jeopardize Germany's economic prosperity and spark a broader trade conflict.
The European Union is preparing to vote on imposing tariffs of up to 36% on Chinese electric vehicles, a decision that could significantly impact companies like BMW and Volkswagen, which manufacture EVs in China. In 2022, the German automotive sector exported vehicles and parts worth €26.3 billion to China while importing goods valued at €6.8 billion. This trade balance underscores the importance of maintaining open markets and free trade for Germany's economic health.
Zipse's call to action coincides with growing concerns over the EU's stance towards China, with some member states, such as France and Italy, supporting the tariff proposals. However, a majority of 15 EU countries representing 65% of the population is needed to halt the tariffs. The implications of these tariffs extend beyond financial metrics; they threaten to escalate tensions between the EU and China, potentially inviting retaliatory measures from Beijing. Zipse advocates for a more constructive approach to international trade, prioritizing cooperation over conflict.
