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BMW stays on course despite Trump's tariffs
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BMW stays on course despite Trump's tariffs
Jul 30, 2025 10:57 PM

BERLIN, July 31 (Reuters) - German carmaker BMW

maintained its full-year guidance on Thursday, holding

strong against the threat of U.S. tariffs as the company's large

manufacturing presence in the country gives it an edge on

competitors.

European carmakers are still digesting a new 15% tariff

agreed between the European Union and U.S. President Donald

Trump, which is lower than the current rate but still poses a

major obstacle to their export-focused business.

Of the deal, BMW said it assumed negotiations were ongoing,

adding that its forecast included mitigating measures in

response to increased tariffs.

In 2025, the group expects a tariff-related impact of around

1.25 percentage points on its automotive segment's profit

margin, the company said. In the first half of the year, the

impact was some 1.5 points.

In the second quarter, the EBIT margin in the segment came

in at 5.4%, just missing analysts' forecast for 5.5% in a

company-provided poll, but within its 2025 target range of 5.0%

to 7.0%.

BMW's results come after peers Volkswagen and

Mercedes-Benz reported hefty blows to their earnings

and cut their outlooks.

BMW, whose biggest plant is in the United States and is the

country's top auto exporter by value, has been more upbeat.

"Our footprint in the U.S. is helping us limit the

impact of tariffs," CFO Walter Mertl said in a statement.

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