BMW Expects U.S. Tariff Relief After Q1 Profit Drop

BMW reported a first-quarter 2025 net profit decline of about 25%, primarily due to weak demand in China and ongoing U.S. tariff pressures. Despite this, BMW reaffirmed its 2025 outlook, forecasting earnings before tax at 2024 levels and an operating margin of 5-7% for its automotive segment. The company projects that U.S. car tariffs will be reduced starting in July 2025, based on negotiations with American officials, and expects this relief to benefit results in the second half of the year. CEO Oliver Zipse highlighted BMW’s major economic role in the U.S. through its Spartanburg, South Carolina plant, which is the nation’s largest auto exporter by value. While competitors like Ford, Mercedes-Benz, and Stellantis have withdrawn their 2025 forecasts due to trade volatility, BMW remains optimistic due to its strong engagement with U.S. policymakers. However, BMW cautioned that ongoing geopolitical and trade uncertainties could still negatively impact its outlook if tariffs persist.