"BMW" expected to lose one billion euros because of the trade war

BMW expected the growing trade tensions between the United States, Europe and China this year to cause losses of one billion euro ($ 1.1 billion), according to CEO Oliver Tsibsa. “We don’t think that all these customs duties will continue for a long time, although some of them may stay longer,” Tsibsia said in an interview with Bloomberg TV on Friday. He explained that the company’s estimate of losses on one billion euros due to the trade war makes it in a relatively safe situation. Customs duties threaten “BMW” in large markets that “BMW” and other European car businesses are preparing to monitor the full impact of customs duties that US President Donald Trump intends to impose on the United States import imports. These definitions are not limited to manufactured cars in Europe, but also include the producer in Mexico and Canada factories, which benefited from previous trade agreements. BMW is currently facing customs duties on cars produced in its factory in San Luis Potosi, Mexico, intended for export to the United States. Although Trump has postponed the imposition of fees on companies that meet the free trade agreement between the United States, Mexico and Canada (USMCA), “BMW” does not meet the requirements of local content to take advantage of releases. At the same time, the company also undergoes customs duties imposed by the European Union on cars imported from China, where its brand ‘mini’ produces an electric motor and an SUV. BMW joined Chinese businesses to challenge these fees before the courts. “If you exaggerate the imposition of customs tariffs, it leads to a negative cycle that affects all the market participants,” Tsibsah warned, adding that “there are no winners in this game.”