BMW foresees earnings hit as Europe counts the early cost of tariffs

Business and FinanceBusiness and Finance

Fri, March 14, 2025

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BMW foresees earnings hit as Europe counts the early cost of tariffs

^{Published on 2025-03-14 07:40:50 - Reuters}

German carmaker BMW said on Friday it expected tariffs to cost it 1 billion euros this year, while European officials warned the U.S. economy would be the biggest loser if President Donald Trump pursues an "idiotic" trade war.

BMW expects its earnings to be impacted in Europe due to the European Union's decision to impose additional tariffs on electric vehicles imported from China starting in July. The German automaker, which produces some of its electric vehicles in China for the European market, is anticipating these costs to affect its financial performance. To mitigate the impact, BMW is considering various strategies, including potentially increasing local production in Europe. The company has already started to account for these potential costs in its financial planning, with the full effect expected to be seen in 2025. This move by the EU aims to protect local manufacturers but could lead to higher prices for consumers and complicate supply chains for companies like BMW.

Read the Full Reuters Article at:
[ https://www.reuters.com/business/autos-transportation/bmw-foresees-earnings-hit-europe-counts-early-cost-tariffs-2025-03-14/ ]

N@N

BMW foresees earnings hit as Europe counts the early cost of tariffs