BMW CEO slams EU-US trade deal delays as tariffs bite
BMW's chief executive has urged politicians to speed up approval of a stalled EU-US trade deal. Oliver Zipse warned that ongoing delays are adding unnecessary costs to the company's cross-Atlantic operations. The agreement, known as the Turnberry Deal, was finalised in 2025 but remains unratified due to legal and political disputes.
Currently, BMW faces double tariffs: 15% on cars exported from its US plant to Europe and another 10% on vehicles imported into the US. These extra charges could be eliminated if the deal moves forward.
The Turnberry Deal was signed in Scotland in summer 2025 after months of negotiation. Under its terms, the US would cap tariffs on EU goods at 15%, while the EU would remove all duties on US imports. For BMW, this would mean significant savings, as the company ships SUVs from its South Carolina factory to Europe and imports other models into the US.
Ratification has hit repeated roadblocks since August 2023. The European Parliament's trade committee (INTA) suspended discussions multiple times, including in late January and February 2026. Complications arose after a US Supreme Court ruling on 20 February 2026 struck down certain tariff powers under the IEEPA law. Additional disputes flared when the US threatened tariffs exceeding the agreed 15% limit on EU exports. So far, these delays have not disrupted BMW's production or supply chains. Zipse criticised Brussels for its slow and unstable approach to negotiations. He called for 'greater stability and speed' in finalising the agreement. Beyond trade, he also pushed back against assumptions that high fuel prices would rapidly boost electric vehicle demand. Instead, he argued that market shifts take time. On broader economic issues, the CEO took aim at Germany's business sector. He described a lack of self-confidence and urged companies to show more courage in decision-making. Despite global tensions, including the recent conflict involving Iran, BMW's operations have not been affected.
The Turnberry Deal remains in limbo, leaving BMW to shoulder double tariffs on transatlantic shipments. If ratified, the agreement would cut costs by removing the EU's 10% duty on US-made BMWs and capping US tariffs at 15%. For now, the company continues to navigate trade uncertainty while maintaining production stability.
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