BMW said newly imposed trade tariffs could dent the carmaker's earnings by 1 billion euros ($1.09 billion) this year, as escalating trade tensions between China, Europe and the U.S. take a mounting toll on global companies' finances.

BMW anticipates a 1 billion euro impact due to U.S. tariffs amidst escalating trade tensions between the U.S. and EU. The carmaker, along with EU officials, criticizes the trade war, expressing concerns over economic growth.

German premium carmaker BMW warned Friday of continued challenges in 2025 from trade tensions and weak demand in China after reporting a plunge in profits last year. The Munich-headquartered group joins other German automakers in reporting sharply lower profits amid a choppy transition to electric vehicles and slowing demand in key market China.