BMW says Donald Trump's tariffs, trade conflicts may cost it €1 billion
By : Sandhya
German carmaker BMW's CEO Oliver Zipse has said that escalating trade conflicts between the US, Europe and China will end up costing the company around €1 billion ($1.1 billion) this year. This comes as BMW along with other European carmakers are bracing for impact from US President Donald Trump’s planned tariffs on vehicles imported to the US.
BMW has a plant in San Luis Potosi, Mexico that exports to the US; despite Donald Trump delaying the tariffs for companies that comply with the USMCA trade deal, BMW fails to comply with local content regulations.
Despite this, Zipse's outlook is more positive: "We don't think that all these tariffs will last very long, though some of them might last longer," he said in a Bloomberg report. The US tariffs will also affect cars made in Mexico and Canada in addition to Europe.