pasGerman premium carmaker

BMW

said Wednesday that it expected to be able to ride out the impact of

US tariffs

over the coming year but warned of a "volatile" situation.

The carmaker stuck with its guidance for the year and expects earnings before taxes (EBT) for 2025 to be level with that of 2024, driven by demand for its pricier motors.

"The BMW Group expects demand to rise in many markets in 2025," the Munich-based vehicle maker said, adding that it expected "some of the tariff increases to be temporary, with reductions from July 2025."

US President Donald Trump has threatened and imposed a range of tariffs in a bid to boost American manufacturing, including a 25 per cent levy on many car imports in effect since April.

BMW's guidance only takes into account tariffs in effect up to March 12. About half of its US sales are imports from Europe, Mexico and South Africa.

"Due to volatile developments and ongoing negotiations, the potential impact of tariffs in the current financial year can only be estimated," BMW said.

For the first quarter, BMW reported net profit of 2.17 billion euros ($2.47 billion) and EBT of 3.11 billion euros. EBT beat expectations of 2.85 billion euros expected in a company poll of analysts.

Those figures nevertheless fell by about 25 per cent on the previous year, with BMW struggling in key market China in the face of local rivals such as BYD.

BMW also took a hit in the "low three-digit million euro range" in the first quarter as a result of tariffs imposed on Chinese electric vehicles by the EU in October, it said.

The company makes electric cars under its Mini brand in the country.