Trade war between U.S. and China could hit BMW profits by $579 million


FRANKFURT (Reuters) – German carmaker expects a to earnings of up to half a billion euros ($ ) next year if tariffs between the United States and remain in place, Chief Financial Officer Nicolas Peter told Automobilwoche magazine.

Tariffs between the United States and China have knocked exports of sport-utility vehicles from its U.S. plant in Spartanburg, South Carolina, to China, resulting in a hit to earnings of just below 300 million euros, Peter said, according to an extract of an article due to be published on Oct. 13.

“If the tariffs remain in 2019, it could have a full-year impact of half a billion euros,” Peter added.

In September, BMW cut its financial guidance, saying it now expected pre-tax profit to fall this year, blaming the between China and the United States and a price in the car market. (Reporting by Edward Taylor; Editing by Mark Potter)

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