European CEOs are hoping that sentiment will prevail as Trump escalates tariff threats
This photo taken on January 22, 2025 in Davos shows the logo of the World Economic Forum (WEF) annual meeting.
Fabrice Coffreni Afp | Getty Images
European business leaders sought to downplay fears of a transatlantic trade war at the World Economic Forum in Davos this week.
US President Donald Trump has repeatedly vowed to impose tariffs on EU imports, warning that the bloc is ready to respond “in a proportionate manner” to additional duties.
In a statement to reporters earlier this week, the newly inaugurated US president said the European Union has been very bad for us, so they are going to pay tariffs. “It’s the only way… you will get justice,” he said. .”
His comments come as the Trump administration is considering imposing an additional 10% tariff on Chinese imports, which could begin as early as next month.
For business leaders attending the annual WEF meeting in Switzerland, reactions to Trump’s tariff threats were mixed.
JPMorgan Chase CEO Jamie Dimon said on Wednesday that the actions Trump could slap on America’s trading partners could be viewed positively, adding that people should “take it out.”
UBS CEO Sergio Ermotti warned that interest rates are unlikely to come down quickly if US tariffs worsen inflation.
Siemens CEO Roland Bush has described the German industrial giant’s “tariffs as unconvincing” amid fears of a US-EU trade war.
Asked about concerns about how the tariffs could affect his business, Bush said Siemens is already a “global company” with a relatively large presence in the United States.
“Local to local, the same for other regions, we are for China (and) Europe,” Bush said.
The CEO of Siemens mentioned the company’s speculation 10 billion dollar purchase US engineering software company Altair, the company has recently been expanding its American footprint.
“On the other hand, tariffs normally increase inflation, so it doesn’t really help. So, I think the idea is what can we do, what kind of agreements can we make to reduce trade tariffs to the lowest level,” Bush told CNBC.
“Free trade and low tariffs, I think, are really drivers for growth,” he said.
‘Tariffs are not helping international trade’.
CEO of a Danish wind turbine manufacturer Vestas said on Thursday that the idea that tariffs would make the world a better place “is a new theory, at least for many of us.”
Vestas’ Henrik Andersen also warned that additional tariffs on imported goods would cause inflation.
Asked about trade tariffs in Europe and the regulatory environment for green energy in the U.S., the Vestas CEO said, “I think about both, I would say, have a sense.”
SAP CEO Christian Klein said on Thursday that U.S. tariffs would not be beneficial, underscoring the need for tech companies to come to terms with international trading partners.
“I would say tariffs don’t help international trade. And when you look at the dependence between Europe and America, or the United States and China, I don’t think that’s good,” Klein told CNBC.
SAP’s Klein said he was in Davos talking to several leaders about how SAP can support them with their supply chain and finance software.
“Because, you know, everybody’s doing business in China. China really wants to continue doing business in the U.S. So for technology, it’s more important now to build these bridges, to build this resilient supply chain,” he added.