BMW foresees potential €1 billion cost due to escalating trade conflicts

Published 14/03/2025, 10:36
© Reuters.

Investing.com -- BMW (ETR:BMWG) AG anticipates that the intensifying trade disputes among the United States, Europe, and China could result in a financial impact of approximately €1 billion for the company this year, according to CEO Oliver Zipse.

Zipse expressed his views on the situation on Friday during a Bloomberg Television interview. He stated that while he does not believe all the tariffs will be long-lasting, some might persist for a more extended period. He further added that with a cost projection of €1 billion, the company is fairly secure.

The escalating trade conflicts have put BMW and other European car manufacturers on alert as they wait to understand the full implications of President Donald Trump’s planned tariffs on vehicles imported into the United States.

BMW is already subjected to duties on vehicles it manufactures at its plant in San Luis Potosi, Mexico, which are intended for export to the United States. Although President Trump has delayed the tariffs for companies adhering to the USMCA trade agreement, BMW does not fully meet the local content requirements.

Zipse cautioned that excessive tariffs could trigger a negative spiral affecting all market participants, stating that there are "no winners in that game."

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