Pakistan, March 14 -- BMW expects tariffs to cost it €1 billion in 2025 as the trade conflict between the U.S. and the EU escalates. The company is facing heavy duties on its Mexico-made vehicles and China-made electric cars, leading to financial strain. CEO Oliver Zipse called the estimate "conservative" but remained hopeful that not all tariffs would last the entire year. Meanwhile, BMW's profits dropped 37% last year, adding to the pressure.

European officials strongly criticized the U.S. trade policies, warning that they could harm global and American economies. French Finance Minister Eric Lombard called a potential EU-U.S. trade war "idiotic" and said Europe would retaliate. German central bank chief Joachim Nagel described T...