BMW "1.6 Trillion KRW Loss This Year Due to Trump Tariffs"

German automaker BMW announced that it expects an additional cost of 1 billion euros (1.58 trillion won) this year due to tariffs imposed by the U.S. government.

According to Bloomberg on the 14th (local time), Oliver Zipse, BMW's Chief Executive Officer (CEO), stated during a conference call that this estimate is based on the assumption that the 25% tariff rate on imports from Mexico and Canada will remain in place until the end of the year.

Previously, BMW had announced that it would not pass on the costs arising from tariffs on vehicles imported from Mexico to consumers for the time being. U.S. President Donald Trump exempted tariffs for one month on products meeting the United States-Mexico-Canada Agreement (USMCA) regulations, but some BMW models from Mexico have already been subject to tariffs.

The management said, "We do not expect all tariffs to continue indefinitely," but also mentioned that additional tariffs could be imposed on both the U.S. and the European Union (EU) sides. BMW, which produces MINI electric vehicles in China through a joint venture with a local company, filed a lawsuit with the EU court last year, arguing that the high tariffs on Chinese electric vehicles imposed by the EU Commission were unfair.

In its earnings announcement on the same day, BMW said that tariff costs would reduce the operating profit margin of its automotive division by 1% this year, projecting a margin of 5-7%. However, the company emphasized, "Demand is expected to increase as inflation stabilizes and interest rates decrease in many countries this year."

This content was produced with the assistance of AI translation services.