BMW under pressure: US tariffs and weakness in China weigh on the company

Relatively Stable Tariffs And Sluggish Business in China Weigh on BMW

2026-03-12 Source: dpa 2 min Reading Time

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US import tariffs on cars, steel and aluminum as well as shrinking sales in China are weighing on BMW's business, but it could be worse ...

Here, the Bavarian car manufacturer BMW looks ahead to 2025: business was sluggish due to US tariffs and weakening sales in China ...(Image: BMW) — Here, the Bavarian car manufacturer BMW looks ahead to 2025: business was sluggish due to US tariffs and weakening sales in China ...
(Image: BMW)

BMW (like the other German vehicle manufacturers) is currently struggling with increased US import duties on cars, steel and aluminum. Added to this is the weakening business in the former growth market of China, which has had a negative impact on BMW's balance sheet. The Bavarians therefore revised their annual forecasts downwards in October. Sales development in the People's Republic was weaker than initially hoped. BMW is also supporting its dealers in China financially. Since then, BMW CFO Walter Mertl has forecast a range of five to six percent for the full year in terms of the profitability indicator, the operating margin (EBIT margin) in the car division. Pre-tax earnings in 2025 were recently slightly below the previous year's level, in which BMW generated around twelve billion dollars. Among other things, the year 2024 had brought problems for BMW with a brake system supplied to the company and had a negative impact on business in China.

BMW Delivered More Cars in 2025

According to BMW management, the free cash flow in the automotive segment should amount to over 3 billion dollars in 2025. And planned customs refunds in the high about three hundred million dollars range from the American and German customs authorities will only come into effect this year. BMW delivered 2.46 million cars to its customers in 2025, half a percent more than in the previous year. Above all, sales in Europe and the USA (but also the subsidiary brand Mini) saved the Munich-based company from another year of shrinking deliveries. However, there was a 1.4 percent decline for the core BMW brand (to 2.17 million cars). China continued to put significant pressure on the figures.

US Plant And Pricing Policy Helped BMW

According to experts, the fact that BMW was also able to grow in the USA over the year as a whole is surprising at first glance. After all, the increased tariffs on vehicle imports from Europe are a burden there. However, BMW is benefiting from its large US plant in Spartanburg, which produces roughly half of the BMW models sold in the USA. In addition, the Group practically did not pass on the burden of the tariffs to customers in the form of higher prices, which increases sales opportunities but puts pressure on margins.

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Date: 08.12.2025

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