This photo taken in Davos on January 22, 2025 shows the logo of the annual meeting of the World Economic Forum (WEF).
Fabrice Coffrini | Afp | Getty Images
European business leaders have generally sought to play down concerns about the possibility of a transatlantic trade war at this week’s World Economic Forum in Davos.
American president Donald Trump there is repeatedly pledged impose customs duties on goods imported from the European Union, encouragement bloc to warn that it is ready to respond to additional obligations “in a proportionate manner”.
Speaking to reporters earlier this week, the newly inaugurated US president said the EU is “very, very bad to us. So they’re going to be included in the tariffs. That’s the only way … you’re going to get fairness.”
His comments came as the Trump administration is also considering imposing additional 10% tariffs on goods imported from China, potentially starting as early as next month.
For business leaders attending the annual WEF meeting in Switzerland, the reaction to Trump’s tariff threats is decidedly mixed.
JPMorgan Chase CEO Jamie Dimon on Wednesday he said that the tariffs Trump is set to impose on America’s trading partners can be viewed positively, saying 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 Chief executive Roland Busch described the German industrial giant as “tariff resistant”, amid fears of a trade war between the US and the EU.
Asked about concerns about how the tariffs could affect his business, Busch said Siemens is a “global company” that already has a relatively large presence in the U.S.
“There are a lot of us [serving] local local, same for other regions, for China [and] for Europe,” Busch said.
The CEO of Siemens quoted the company roughly A $10 billion acquisition from US engineering software company Altair, saying the company has recently been expanding its operations in the US.
“On the other hand, tariffs tend to increase inflation by definition, so that doesn’t really help. So I think the idea would be what can we do, what kind of deals can we make to really reduce trade tariffs to a minimal level,” Busch told CNBC.
“I think free trade and low tariffs are really drivers of growth,” he added.
‘Tariffs do not help global trade’
CEO of a Danish wind turbine manufacturer Vestas he said on Thursday that the idea that tariffs would make the world a better place “is, to say the least, a new theory for many of us.”
Vestas’ Henrik Andersen also warned that additional tariffs on imported goods are likely to create inflationary risks.
When asked about the prospects of trade tariffs in Europe i sour regulatory environment for green energy in the US, the CEO of Vestas told CNBC: “I think to both of them, I will say, let common sense prevail.”
SAP Chief Executive Christian Klein said Thursday that U.S. tariffs would not be helpful, underscoring the importance for tech companies to strike deals with global trading partners.
“I would say that tariffs do not help global trade. And when you look [at] dependence between Europe and the United States, or the United States and China, I don’t believe that’s good,” Klein told CNBC.
SAP’s Klein said he spoke with several leaders in Davos about how SAP can support them with its supply chain and finance software.
“Because, you know, everybody’s doing 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 these bridges, to build these resilient supply chains,” he added.
