BMW expects trade tariffs to cost the carmaker 1 billion euros ($1.09 billion) this year, its CEO said on Friday, factoring in EU duties on its China-made EV and newly imposed U.S. tariffs which are upending global trade.

German premium carmaker BMW warned Friday of continued challenges in 2025 from trade tensions and weak demand in China after reporting a plunge in profits last year.

BMW expects to report slight sales growth this year but said earnings would remain flat as it faces headwinds from continuing challenges in China and costs related to tariffs and its supply chain.