BMW’s chief executive Oliver Zipse has predicted that the 25 per cent tariff imposed by former US President Donald Trump on foreign car imports will be reduced as early as July, describing the duties as “temporary” and suggesting ongoing negotiations with Washington are progressing positively.
In an interview reported by the Financial Times, Zipse highlighted BMW’s extensive manufacturing presence in the US — the automaker was the country’s top car exporter by value last year — as a key factor in its dialogue with American officials. “There are a lot of negotiations behind the scenes,” Zipse said. “And that leads to the assumption that [the tariffs] are rather temporary. We can see that our large footprint there will not be ignored.”
BMW shares surged more than 4 per cent on Wednesday after the Munich-based carmaker posted stronger-than-expected first-quarter earnings and reaffirmed its full-year guidance, expecting profits to broadly match those of last year.
Zipse, who met with Trump alongside other German auto executives on April 18, is the first industry leader to publicly forecast a rollback of the contentious tariffs. While carmakers welcome recent exemptions on imported steel and aluminium parts and rebates for US-based production, a 25 per cent levy on foreign-made vehicles remains in effect.
The sector has been roiled by protectionist policies from both Washington and Brussels. European Union anti-subsidy duties on Chinese electric vehicles have also weighed on the industry, especially for companies like BMW that rely on global supply chains.
BMW’s chief financial officer Walter Mertl acknowledged that the tariffs introduced in early March will have a “notable” impact on second-quarter results but maintained an optimistic outlook for the company’s US operations.
Nonetheless, analysts remain cautious. Citi questioned BMW’s “optimistic sales growth expectation,” citing ongoing weakness in the Chinese market, where the company saw a 9 per cent revenue decline in the first quarter, adjusted for currency fluctuations. Earnings before tax fell 25 per cent year-on-year to €3.1 billion.
The company also said EU tariffs on Chinese-made models such as the iX3 SUV and electric Mini Cooper — both exported to Europe — had cost it a “low three-digit million” euro figure, as it now faces a 30 per cent import duty on those vehicles.
Amid the trade friction, BMW appears to have fared better than Mercedes-Benz, whose first-quarter earnings dropped 41 per cent, according to recent disclosures.
Still, Zipse emphasized that not all market distortions stem from US policy. “The higher tariffs are not caused by the US, but by the EU,” he said, pointing to the escalating transatlantic trade tensions affecting the global auto industry.
