BMW expects $1.09 billion hit to earnings as tariff war escalates
BMW (BMW.DE) expects trade tariffs to cost the carmaker 1 billion euros ($1.09 billion) this year, its CEO said on Friday, factoring in EU duties on its China-made EV and newly imposed U.S. tariffs which are upending global trade.
The car makers stock fell almost 2% before the bell on Friday. The premium carmaker expects its earnings margin for cars to be 5-7% in 2025, below an LSEG consensus estimate of 7.3%, dragged down one percentage point by the impact of tariffs already imposed by March 12.
Chief Executive Oliver Zipse said the 1 billion euro provision in the group’s earnings was “conservative”, with possible further tariffs to come from the European Union and United States.
Still, executives did not expect all the tariffs in place so far, which include 25% tariffs on steel and aluminium and on BMW’s vehicle imports to the U.S. from Mexico, to remain in place for the whole year.
Source: FINANCE.YAHOO
