The European carmaker BMW expects tariffs imposed by the United States to cost it €1 billion ($1.09 billion) this year, according to a statement from its CEO Oliver Zipse. The company is directly affected by the trade spat between Washington and the European Union.
EU officials have warned that the US economy would be the biggest loser if President Donald Trump pursues an “idiotic” trade war. European stocks outperformed their US peers on Friday, with EU trade chief Maros Sefcovic saying he has a better understanding of US counterparts after meeting with them to discuss the escalating tariff conflict.
BMW’s estimate is in line with analysts’ predictions that tariffs will have a significant impact on the company’s earnings. The European Union is set to retaliate against US tariffs on April 2, and EU officials are calling for dialogue to reduce tensions.
US consumer sentiment plummeted to a nearly 2-1/2-year low last month due to worries about tariffs boosting prices and undercutting the economy. Stocks rebounded in both the US and Europe after a rough week driven by tariff worries.
Central bankers have described Trump’s policies as a “tragedy for the American economy,” with French central bank governor Francois Villeroy de Galhau warning that the trade war would rebound on the US economy.
Source: https://www.reuters.com/business/autos-transportation/bmw-foresees-earnings-hit-europe-counts-early-cost-tariffs-2025-03-14