BMW predicts that the global tariff war will lead to losses of €1 billion this year, the Financial Times reports.
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The maker of Mini and Rolls-Royce cars has posted a 36% drop in profits in 2024 and does not expect the situation to improve in 2025. New tariffs on electric vehicle imports from China to the EU, shipments from Mexico to the US and US restrictions on aluminum could cut the company's margins by 1%.
BMW CEO Oliver Zipse noted the negative impact of tariffs on production. “We hope that soon everyone will understand: in such a situation there are no winning sides,” he added.
BMW's largest plant in the US, located in South Carolina, exported cars worth €10 billion in 2023. At the same time, 56% of cars produced in Germany were sold outside the EU.
BMW shares have fallen more than 20% in a year, and after the financial damage was reported, their value fell another 2%.
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