Transportation

BMW Carmaking Margin Declines Due to US Tariffs, China Slump

BMW confirmed its full-year outlook of an auto margin of at least 5%.Photographer: Leonhard Simon/Getty Images

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By Alexey Anishchuk

July 31, 2025 at 5:30 AM UTC

Updated on

July 31, 2025 at 7:06 AM UTC

BMW AG’s profitability declined in the second quarter as lower sales in China and extra costs from President Donald Trump’s trade war weighed on the German luxury carmaker’s earnings.

The automotive operating margin fell to 5.4% in the three months through June — still within its guidance range for the year and slightly above analyst expectations. BMW expects tariffs to drag down the margin by 1.25 percentage points in 2025.