Global Automakers Face Major Challenges From U.S. Tariffs and Weak Chinese Market

BMW, Tesla, and Volkswagen brace for financial impacts as President Trump’s trade policies disrupt supply chains and intensify global competition.

BMW expects a €1 billion ($1.1 billion) hit to its 2025 earnings due to U.S. tariffs and retaliatory measures from the European Union and China.
Tesla warns that even its U.S.-based production cannot shield it from the financial strain of escalating trade conflicts and retaliatory tariffs on electric vehicles.
BMW reported a 37% drop in 2024 profits, driven by a 13.4% decline in Chinese sales and challenges from local EV competitors like BYD.
Volkswagen’s Cupra brand plans to enter the U.S. market by 2030 despite the uncertainty caused by tariffs, focusing on both electric and combustion vehicles.
Automakers, including BMW and Volkswagen, are developing contingency plans to adjust production and supply chains in response to the evolving tariff landscape.