BMW anticipates a reduction in US car tariffs starting July, based on discussions with US officials, offering an optimistic view amid the trade war.
The German luxury carmaker has reaffirmed its 2025 forecast, despite warnings of a “notable” impact on second-quarter earnings from tariffs imposed by US President Donald Trump.
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Engaged in multi-level discussions with US policymakers, BMW has found its arguments for tariff relaxation are being considered, reported Reuters.
BMW Group finance chief Walter Mertl was quoted by the news agency as saying: “We are noticing that things are moving, developing and being negotiated everywhere. Accordingly, our reading, based on all the networks that we have at our disposal, is that we assume that something will change in July.”
BMW CEO Oliver Zipse highlighted the economic contribution of the Spartanburg plant in South Carolina, which supports approximately 43,000 jobs and contributes over $26bn annually.
“We can already see that this will not be ignored, our large footprint,” Zipse commented, without providing further details.
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By GlobalDataIn contrast to competitors like Mercedes-Benz, Ford, and Stellantis, which have withdrawn their 2025 forecasts due to US trade policy uncertainty, BMW stands by its March projections.
The company anticipates earnings before tax for 2025 to match 2024 levels, with an automotive business operating margin between 5-7%.
BMW expects some tariff increases to be temporary, with reductions foreseen from July 2025.
BMW shares saw a 1.3% rise after the firm reported first-quarter earnings before interest and tax of €2.02bn ($2.3bn) at its auto unit, surpassing the LSEG poll’s average forecast of €1.85bn.
The automotive unit’s operating margin reached 6.9%, down from the previous year’s 8.8% but still above the 6.3% poll prediction, supported by strong orders and cost discipline.
AJ Bell investment director Russ Mould was quoted the news agency as saying: “In an environment where its peers have been withdrawing guidance left, right and centre, BMW’s decision to stick with guidance was well-received by the market.
“Part of this is predicated on some tariffs going into reverse from July onwards – so investors will be able to judge from the summer whether or not the current forecasts remain credible.”
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