BMW caught in tariff crossfire as profit falls 23%

German automaker BMW has reported a 23% decline in first-quarter profit, citing tariff pressure, weak demand in China and currency fluctuations, according to foreign media.

The company said net profit fell to €1.67 billion between January and March, according to its earnings report. Revenue decreased by 8.1% to €31 billion, while vehicle sales dropped 3.5% to 565,780 units.

BMW noted that year-on-year comparisons are partly distorted, as the same quarter last year did not include the new tariffs introduced under US President Donald Trump. The company expects these tariffs to continue affecting results, although to a lesser extent than in 2025.

Weak performance in China also had a significant impact, with German automakers broadly facing difficulties in the market. Growth in Europe helped offset some of the decline, although not fully, despite the company recording a record influx of orders in the region.

CEO Oliver Zipse highlighted that in the first three months of the year, BMW received more orders in Europe than in any other quarter in the company’s history.

Despite the pressure, the company said it will maintain strict cost control without launching a formal cost-cutting program.

Zipse will step down after the annual shareholders’ meeting on May 13, with production chief Milan Nedeljković set to replace him on May 14.

By Jeyhun Aghazada