Photo: Oliver Zipse (Getty Images) Author: Konstantin Shirokun
BMW will lose more than a billion euros due to trade wars. And this is a “conservative” forecast. If economic disagreements between the US, Europe and China intensify, the losses could be even greater.
This was stated by the head of the company, Oliver Zipse, RBC-Ukraine reports with reference to Reuters.
The tariffs have not yet fully come into effect, but they are already having an impact on the market: consumers are buying less and investors are investing less.
Zipse said BMW expects profits to fall by one billion euros in 2025. The most painful blow to the Bavarian company will come from recently introduced US and EU tariffs on Chinese-made electric cars.
New measures by US President Donald Trump are adding fuel to the fire. On April 2, he is going to impose a 25 percent duty on cars from Mexico, where BMW has a plant in San Luis Potos. However, the company's top managers do not expect the tariffs to remain in force throughout the year.
BMW, like other European auto giants, is already seeing falling profits. Last year, the decline was 37 percent, and the forecasts for 2025 are not encouraging. The company has delivered fewer than 2.5 million cars worldwide. China remains the largest market, accounting for 29.2 percent of cars sold. The United States is second with 16.3 percent. Germany is third with a 10.8 percent share.
Recall that earlier, US President Donald Trump postponed the introduction of additional duties on car imports from Canada and Mexico, activating a 30-day deferment for goods related to the production of vehicles and falling within the framework of the North American Free Trade Agreement (NAFTA).
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