BMW Confident in Navigating US Tariffs, Banking on Global Footprint and Free Trade Push

BMW is staying the course despite mounting pressure from US tariffs. The German premium automaker said Wednesday it expects to ride out the current trade chaos, bolstered by its global manufacturing footprint and strong lobbying for free trade.

Speaking to reporters, CEO Oliver Zipse said BMW is actively engaging with political stakeholders to push for tariff relief, particularly in North America. “We are advocating this at various political levels in our markets,” Zipse said. “People listen to us attentively and our arguments are well received.”

He expressed confidence that recent tariffs imposed by US President Donald Trump on countries like Canada and Mexico would be reversed in due time. “We assume that the North American free trade zone will be restored because these countries are far too interdependent,” Zipse said, citing high cross-border supply chain integration.

Trump’s trade moves — including a 25% tariff on many imported cars — have sparked industry concern, but BMW believes its diversified manufacturing strategy offers some protection. The company operates its largest production site in Spartanburg, South Carolina, which exported over $10 billion in vehicles last year, mainly to global markets.

While BMW’s first-quarter net profit dipped 25% year-on-year to €2.17 billion due to pressure in China and EU tariffs on Chinese-made EVs, its earnings before tax still beat expectations, coming in at €3.11 billion. Analysts had forecast €2.85 billion.

BMW reiterated its full-year guidance, expecting 2025 earnings before tax to remain in line with 2024 — buoyed by demand for high-end models and anticipation that some tariff increases will be rolled back from July 2025.

About half of BMW’s US vehicle sales still rely on imports from Europe, Mexico, and South Africa. But the company appears well-positioned to weather short-term disruptions thanks to a proactive global trade strategy and strategic geographic diversification.

BMW’s electric vehicle arm, particularly its Mini EVs made in China, has been impacted by EU tariffs, resulting in a “low three-digit million euro” hit this quarter. Nonetheless, investor confidence seems intact, with BMW shares rising 3.5% in Frankfurt following the earnings announcement.

In a volatile trade environment, BMW’s message is clear: stay global, lobby hard, and lean into premium demand.

{Source: Legit}

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