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German firms in China hit by tariffs, but ‘in China for China’ paying off: poll

  • BMW reported on May 7, 2025, that U.S. Import tariffs introduced in April will impact its business in the second quarter, especially in the U.S. Market.
  • The tariffs stem from a broader U.S.-China tariff war that also involves Chinese retaliatory duties and has created great geopolitical and macroeconomic uncertainty.
  • BMW confirmed its 2025 outlook despite rivals like Mercedes and Ford suspending forecasts, citing continuing risks from tariffs, supply bottlenecks, and declining sales in China.
  • BMW's first-quarter operating margin was 6.9%, above forecasts but down from 8.8% last year, while net profit fell 26.4% to 2.17 billion euros due to weaker sales and tariff costs.
  • German firms in China benefit from a localized ‘in China for China’ strategy that limits exposure to U.S. Tariffs, supporting investment plans despite the challenging trade environment.
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China's Weakness Breaks Profit at BMW

The car manufacturer BMW has started with a profit break into the year. At the same time, Munich expects the burden of US tariffs to fall in the summer and therefore stick to its annual outlook.

·Hamburg, Germany
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regionalmedianews.com broke the news in on Wednesday, May 7, 2025.
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