BMW expects lower profits due to US-EU trade war
German carmaker BMW said it expects US duties to cost it 1bn Euros in 2025, while European officials said the US economy will be the biggest loser if President Donald Trump continues the trade war, Reuters reports
According to the news agency, BMW is directly in the firing line of the trade spat between Washington and the European Union.
“Trump has increased tariffs on US steel and aluminium imports and imposed a 25 percent duty on vehicles from Mexico that do not comply with North American trade deal’s rules of origin, including BMWs. The EU, which Trump has labelled ‘hostile and abusive’, on trade, is in line for more US tariffs on April 2nd. The bloc has set plans to retaliate while calling for dialogue,” the publication reads.
BMW CEO Oliver Zipse meanwhile said the company expects profits to fall to 1bn Euros ($1.09bn) in 2025 as a result of new US and EU duties on Chinese-made electric cars.
The company also said profits fell 37 percent last year.
