Trump's Trade Wars Mean Small Change for Carmakers for Now
- Net impact ‘negligible’ for BMW, Daimler, Exane analysts say
- Carmakers face tariff whiplash on opposing China, U.S. moves
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President Donald Trump, like the proverbial bull in a China shop, has sent shares of BMW AG and Daimler AG into a tailspin this year. Yet for all the uproar on car tariffs, the cost to German automakers is negligible for now.
BMW, exporting its popular sport utility vehicles from the U.S. to China, might see a drag on profit of just 1.3 percent while rival Daimler, shipping SUVs on the same route, faces almost zero exposure, analysts at Exane BNP Paribas said in a report this week. Volkswagen AG, with no car trade between the warring superpowers, will be better off after recent moves by China to lower tariffs.