European CEOs hope common sense prevails as Trump escalates tariff threats

European business leaders have generally tried to downplay concerns about the prospect of a transatlantic trade war at this week’s World Economic Forum in Davos.

president of the united states donald trump has repeatedly promised impose tariffs on goods imported from the European Union, incitement The bloc warned that it is willing to respond to additional tariffs “in a proportionate manner.”

Speaking to reporters earlier in the week, the newly inaugurated US president said the EU has been “very, very bad to us. Therefore, they will face tariffs. It is the only way… to achieve justice “. “.

His comments came as the Trump administration also considers imposing an additional 10% tariff on goods imported from China, potentially starting next month.

For business leaders attending the annual WEF meeting in Switzerland, the reaction to Trump’s tariff threats has been decidedly mixed.

JPMorgan Chase executive director Jamie Dimon on Wednesday saying that the tariffs Trump is expected to impose on America’s trading partners can be viewed positively, preaching that people should “get over it.”

Meanwhile, the general director of UBS, Sergio Ermotti, warned that interest rates were not likely to fall so quickly if US tariffs stoked inflation.

Siemens Chief Executive Roland Busch described the German industrial giant as “tariff-proof”, amid fears of a US-EU trade war.

When asked about concerns about how tariffs could affect its business, Busch said Siemens was a “global company” that already has a relatively large presence in the US.

“We are (serving) very local to local, the same for other regions, for China (and) for Europe,” Busch said.

The CEO of Siemens cited the approximately Acquisition for $10 billion from US engineering software firm Altair, saying the company has recently been expanding its presence in the United States.

“On the other hand, tariffs typically increase inflation by definition, so it doesn’t really help. So I think the idea would be what can we do, what kind of deals to make to actually reduce trade tariffs to the minimum level,” he said. Busch to CNBC.

“I think free trade and low tariffs are really an engine for growth,” he added.

The CEO of the Danish wind turbine manufacturer Vesta On Thursday, he said the idea that tariffs will lead the world to a better place is “at least a new theory for many of us.”

Vestas’ Henrik Andersen also warned that additional tariffs on imported goods will likely create an inflation risk.

When asked about the prospects for trade tariffs in Europe and the Bitter regulatory environment for green energy In the United States, Vestas’ chief executive told CNBC: “I think I’ll tell them both to let common sense prevail.”

SAP Chief Executive Christian Klein said Thursday that U.S. tariffs would not be helpful, underscoring the importance of technology companies reaching deals with global trading partners.

“I would say that tariffs are not helping global trade. And when you look at the dependencies between Europe and the United States, or the United States and China, I don’t think that’s a good thing,” Klein told CNBC.

SAP’s Klein said he had been talking to several leaders in Davos about how SAP can support them with its supply chain and financial software.

“Because, you know, everyone is doing business in China. China, of course, also wants to continue doing business in the US. So for technology, it’s even more important now to build these bridges, build these chains of resilient supply”. “he added.