US President Donald Trump recently threatened the European Union with definitions: “The European Union is very bad for us. So they will be in definitions. It is the only way … you will get fair.” Cars made in America are subject to the European Union by 10 %, but European cars that were imported to the United States get a 2.5 % lower customs average. This does not seem fair, right?
Speaking at the Welt-Merschaftsgipfe conference earlier in Berlin, the CEO of BMW Oliver Zipse suggested that the European Union and the United States on the field by applying a single tariff of 2.5 % on both sides of the pond. This would ultimately benefit customers by avoiding having to push major signs. We can all agree that new cars are already expensive, and that the customs tariff increases the situation.
“Our balanced global preparation makes us flexible and competitive. However, free trade is of tremendous importance all over the world: it is one of the most important growth and progress engines. Definitions, on the other hand, hinder free trade, slow innovation, and put a negative cycle of movement. This is. It is the reason that we must discuss a number of commercial barriers instead of more commercial barriers. In the other direction, let’s create a standard stadium: a 2.5 percent tariff rate on both sides.
Earlier this month, BMW joined Chinese auto manufacturers in opposing the European Union tariff on the assembled electric cars in China. The luxury brand presented a challenge in the European Union’s Justice Court (CJEU). When the European Union definitions were presented last October, IX3, Mini Coper (J01) and Aceman were severely affected. The BMW group was exposed to a huge tariff of 20.7 %. It is much worse for SAIC, which slapped with a 35.3 % tariff. Cars made in China and import to the European Union are also subject to import service by 10 %.
Oliver Zebisi was completely audio about the customs tariff, describing it clearly as “photographing yourself in the foot.” Also, the definitions are “mysterious preventive functions that mainly harm ourselves.” The BMW president was referring to the Chinese EV tariff as a “fatal signal for the European auto industry”.