BMW expects a €1 billion loss for 2025 due to the US-EU tariff dispute, including a 25% duty on certain vehicles and tariffs on its China-made electric cars. The company hopes not all tariffs will remain for the full year.

BMW has stated that it expects tariffs to result in a 1 billion euro ($1.09 billion) hit to its earnings for 2025. The company’s forecast comes amid a trade dispute between the U.S. and the European Union, which has seen increased tariffs on steel, aluminium, and some vehicles from Mexico, including BMW’s cars.

U.S. President Trump has imposed a 25% duty on certain vehicle imports from Mexico and threatened additional tariffs on the EU, which he has described as "hostile and abusive." In response, the EU has pledged to retaliate but continues to call for dialogue to resolve the issue.

BMW’s CEO, Oliver Zipse, mentioned that the company’s estimate is "conservative," though executives do not expect all tariffs to remain in place for the entire year. The company reported a 37% drop in profits last year, partly due to the impact of tariffs and duties on its business.

Meanwhile, French Finance Minister Eric Lombard expressed concerns that a trade war between the EU and the U.S. would negatively impact both economies, describing it as "idiotic." The EU’s trade chief, Maros Sefcovic, is scheduled to speak with U.S. officials about the ongoing tariff conflict.

The trade tensions are already affecting global economic growth, with firms and consumers delaying investments due to the uncertainty surrounding the future of the tariffs.

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