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This photo taken in Davos on January 22, 2025 shows the logo of the annual meeting of the World Economic Forum (WEF).
Fabrice Cofrini | Afp | Getty Images
European business leaders have generally sought to play down concerns about the prospect of a transatlantic trade war at the World Economic Forum in Davos this week.
President of the United States Donald Trump has repeatedly pledged introduce duties on goods imported from the European Union, prompting the bloc will warn that it is ready to respond to additional duties “proportionately”.
Speaking to reporters earlier this week, the newly-inaugurated US president said the EU was “treating us very, very badly. So they will impose tariffs. That’s the only way … you’ll get justice.”
His comments came as the Trump administration is also considering imposing additional 10% tariffs on goods imported from China, which could start as early as next month.
For business leaders attending the annual WEF meeting in Switzerland, the reaction to Trump’s tariff threats was decidedly mixed.
JPMorgan Chase General director Jamie Dimon on Wednesday said that the tariffs that Trump is expected to impose on US trading partners can be viewed positively, touting that people should “get over it.”
UBS CEO Sergio Ermotti, meanwhile, warned that interest rates are unlikely to fall as quickly if US tariffs fuel inflation.
Siemens CEO Roland Bush called the German industrial giant “tariff resistant” amid fears of a trade war between the US and the EU.
Asked how the tariffs might affect his business, Bush said Siemens is a “global company” that already has a relatively large presence in the U.S.
“We’re very (serving) local to local, the same for other regions, for China (and) for Europe,” Bush said.
The Siemens CEO quotes the firm as saying A $10 billion acquisition of American engineering software firm Altair, saying the company has recently been expanding its presence in the US.
“On the other hand, tariffs usually increase inflation by definition, so it doesn’t help much. So I think the idea is that we can do what kind of deals we can do to really reduce trade tariffs to a minimum level,” Bush told CNBC.
“Free trade and low tariffs, I think, is really the driver for growth,” he added.
“Tariffs do not help world trade”
CEO of a Danish wind turbine manufacturer News said on Thursday that the idea that tariffs would make the world a better place was “at least a new theory for many of us.”
Vestas’ Henrik Andersen also warned that additional duties on imported goods would likely create inflationary risks.
On the question of prospects for trade tariffs in Europe and in acidifying the regulatory environment for green energy in the US, the CEO of Vestas told CNBC: “I think for both, I would say let the sense prevail.”
SAP CEO Christian Klein said on Thursday that the US tariffs would not be helpful, stressing the importance for technology companies to strike deals with global trading partners.
“I would say that tariffs do not help global trade. And if you look (at) the dependencies between Europe and the United States, or the United States and China, I don’t believe that’s a good thing,” Klein told CNBC.
SAP’s Klein said he spoke with several leaders at Davos about how SAP could support them with their supply chain and finance software.
“Because, you know, everybody does business in China. China, of course, also wants to continue doing business in the US. So it’s even more important for technology now to build those bridges, to build those sustainable supply chains,” he added.
