BMW holds strong despite Trump’s tariffs

German carmaker BMW maintained its full-year guidance on Thursday, holding strong against the threat of US 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 EU and US 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 expected a tariff-related impact of about 1.25 percentage points on its automotive segment’s profit margin, the company said. In the first half of the year, the impact was about 1.5 points.

In the second quarter, the earnings before interest and taxes (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%-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 US and is the country’s top auto exporter by value, has been more upbeat.

“Our footprint in the US is helping us limit the impact of tariffs,” CFO Walter Mertl said in a statement.

Reuters