BMW CEO Opposes EU Tariffs on Chinese Cars Despite Price Threat

BMW CEO Milan Nedeljkovic has rejected calls for expanded tariffs on Chinese car imports, telling the newspaper FAZ that voluntary pricing agreements are the better answer to what he called commercially incomprehensible offers from China.

"Some Chinese cars are being offered here at prices that are not comprehensible from a business perspective," Nedeljkovic said in the interview published Tuesday, Sept. 22. He warned that such pricing risked fuelling protectionist tendencies in Europe.

The remarks put the head of one of Germany's largest carmakers directly at odds with the direction of policy in Brussels. The European Union is assessing measures to address what Commission President Ursula von der Leyen has described as an "unsustainable" trade deficit with China.

Why does the BMW CEO oppose tariffs?

Nedeljkovic framed additional duties as a heavier form of state interference than negotiated pricing commitments. "Additional tariffs would constitute an even greater intervention, which is why I support voluntary agreements based on fair conditions," he told FAZ.

He added a warning about the broader consequences of a tit-for-tat approach: "Nobody is interested in an escalation."

The position is consistent with BMW's public record. The company has repeatedly criticised current EU duties on Chinese EV imports and has warned that such measures risk a trade conflict.

BMW's stance is not purely philosophical. The company builds its all-electric Mini in China for export, meaning any escalation in trade barriers between the two blocs could hit BMW's own supply chain and cost structure directly.

What is Brussels considering?

The European Commission's review sits against pressure from parts of the European auto industry and political figures. Von der Leyen has put the trade deficit with China at the center of the debate, calling the current imbalance "unsustainable."

Some European auto executives and politicians have gone further than the existing duties. They have called for:

• Local content rules for vehicles sold in Europe
• Expanded tariffs covering plug-in hybrids imported from China

Their concern is market share. Low-cost Chinese imports, including both battery-electric and plug-in hybrid models, are seen as a direct threat to European manufacturers' position in their home market.

What does Nedeljkovic propose instead?

The BMW chief called for political dialogue with China aimed at reaching a common understanding of market-based pricing, followed by concrete measures. His preferred endpoint is a voluntary framework in which Chinese producers commit to fair pricing conditions in Europe, rather than facing punitive duties at the border.

That approach mirrors the logic of the minimum-price mechanisms the EU has used in other trade disputes: it addresses the price advantage without erecting a tariff wall that invites retaliation.

Why does the split matter?

The disagreement inside Europe's auto-policy camp comes at a consequential moment. The EU is still calibrating its response to Chinese vehicle imports, and the industry itself is not speaking with one voice.

BMW's exposure runs both ways. It competes with Chinese brands in Europe, yet it exports a China-built electric Mini into the European market. Tariffs designed to shield European producers could raise costs for BMW's own China-based production.

That dual exposure explains why Nedeljkovic is pushing Brussels toward negotiation rather than escalation — and why the outcome of the Commission's assessment will shape not just the competitive position of European carmakers, but the cost base of those with manufacturing footprints in China.

For now, the industry's largest players remain divided between those seeking tougher barriers and those, like BMW, betting that a negotiated floor on prices can defuse the conflict without triggering the trade war that Nedeljkovic says nobody wants.