BMW CEO Oliver Zipse said on Friday he is optimistic that the EU and the US will soon reach a “manageable” agreement on car import tariffs, potentially including a mechanism to offset imports with exports.
Zipse’s comments come as Europe awaits a letter from the US administration under Donald Trump that could outline the framework of a trade deal and clarify tariff levels on European automotive exports.
Trump said on Thursday the EU could receive a letter on tariff rates by Friday.
“I’m optimistic that there will be a manageable outcome but we have to wait for the result,” Zipse told journalists at a company event in Munich on Friday.
He said a possible “netting mechanism” could be part of the deal, allowing exports from the US to offset imports. BMW stands to benefit from such an arrangement, as its largest production site is in Spartanburg, South Carolina.
The mechanism could be based on the value of exports out of the US market — more than $10bn (R179.53bn) in 2024 in BMW’s case — rather than the number of exported vehicles, he said.
If both sides were to agree on such a mechanism, it could also benefit imports of car parts, according to people familiar with the matter.
“We have an important point because we are the largest car exporter in the US,” Zipse said, referring to the 225,000 cars it exported out of the country in 2024.