BMW sees $1.09b earnings hit from US tariffs

German carmaker BMW said on Friday it expected tariffs to cost it I billion euros ($1.09 billion) this year, while European officials warned the US economy would be the biggest loser if President Donald Trump pursues an “idiotic” trade war.

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BMW is directly in the firing line of the trade spat between Washington and the European Union, set to escalate in early April as Trump imposes “reciprocal” tariffs to match higher duty rates of EU and other countries and counteract their non-tariff trade barriers.

Trump has increased tariffs on US steel and aluminium imports and imposed a 258 duty on vehicles from Mexico that do not comply with North American trade deal’s rules of origin, including BMWs.

The EU, which Trump has labeled “hostile and abusive,” on trade, is in line for more US tariffs on April 2. The bloc has set plans to retaliate while calling for dialogue.

EU trade commissioner Maros Sefcovic spoke with US Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer on Friday about the spiralling tariff conflict, calling it an important exchange and “a key part of better understanding each other.”

“There's a lot of work ahead but let's stay focused and explore the best ways to move forward in the right direction,” Sefocovic said in a post on X.

Sefcovic has previously said that the EU is ready to discuss lowering tariffs on both sides of the Atlantic.

The conversation comes a day after Trump responded to the EU retaliation plan by threatening to slap a 2008 tariff on wine cognac and other alcohol imports from Europe.