The German automobile corporation BMW forecasted that an additional expense of €1 billion (approximately 1.58 trillion won) will occur this year due to tariffs from the Trump administration.
According to Bloomberg and Reuters on the 14th (local time), Oliver Zipse, BMW's Chief Executive Officer (CEO), noted during a conference call that if the tariff rate of 25% on imports from Mexico and Canada remains until the end of the year, an additional expense of €1 billion will occur this year.
U.S. President Donald Trump exempted tariffs on goods that meet United States-Mexico-Canada Agreement (USMCA) regulations for one month, but some models of BMW from Mexico are already subject to tariffs.
During the earnings announcement, BMW projected that due to tariff expenses, the operating profit margin of the automotive institutional sector will decrease by 1 percentage point to a forecast of 5% to 7% this year.
BMW stated that its sales volume, including the brands Mini and Rolls-Royce, decreased by 4% compared to 2023, totaling 2.45 million units, while pre-tax operating profit fell by 37.7% to €11.5 billion (approximately 18.2 trillion won).