BERLIN: German carmaker BMW maintained its full-year guidance on Thursday, holding strong against the threat of U.S. tariffs as the company’s strong 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 the effects could still only be represented through assumptions regarding ongoing negotiations and 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 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%.
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