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BMW Profits Slump on China Woes, US Tariffs

UPPER BAVARIA, BAVARIA, JUL 31 – BMW's net profit fell 32% in Q2 due to US tariffs and a 14% drop in China sales amid strong local electric vehicle competition, the company reported.

  • BMW reported a 32% drop in pretax earnings to €2.6 billion due to currency effects and declining sales in China.
  • In 2025, BMW expects US tariffs to impact the automotive segment's profit margin by about 1.25 percentage points.
  • Despite the downturn, BMW's finance chief Walter Mertl stated that the carmaker's 'business model remains intact.'
  • BMW benefits from a substantial US manufacturing presence that helps mitigate the impact of tariffs, according to CFO Walter Mertl.
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69 Articles

Center

In the second quarter, the car manufacturer BMW experienced the effects of US tariffs and a weak China business. Net profit fell by around 32 percent.

·Hamburg, Germany
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Lean Left

Donald Trump's customs policy and weak business in China have brought BMW a significant decline in profits. Nevertheless, the Group is optimistic and expects a worldwide rising car market.

·Germany
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Right

In the second quarter of 2025, BMW recorded a decline in profit of around one third to EUR 2.6 billion, with sales also shrinking significantly. The operating margin is 6.2 percent below the target, while the Group expects a maximum of seven percent for the full year.

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  • 38% of the sources are Center, 38% of the sources lean Right
38% Right

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Bloomberg broke the news in United States on Thursday, July 31, 2025.
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