BMW CEO Oliver Zipse Optimistic on US-EU Car Tariff Deal Despite 30% Tariffs Starting August 1 and Volvo’s 1 Billion Euro Impact

BMW Chief Executive Officer Oliver Zipse expressed optimism that the European Union and the United States will soon reach a "manageable" agreement on car import tariffs. He suggested that a potential trade deal could include a "netting mechanism" or offsetting system, where tariff-free imports would depend on the value of exports from the US rather than the quantity of vehicles imported. This approach aims to mitigate the impact of tariffs on the European auto industry. However, this optimism faces a challenge as US President Donald Trump announced a 30% tariff on EU auto imports, set to take effect on August 1, 2025. The tariff increase threatens to disrupt trade and increase costs for manufacturers like BMW and Volvo, the latter of which anticipates a 1 billion euro impact due to the tariffs. The final outcome of the trade negotiations remains uncertain, with industry leaders awaiting further developments.