(MENAFN) German automobile manufacturer BMW has announced a notable decline in profits for the first half of the year, attributing the decrease to American tariffs, reduced global demand, and escalating rivalry from Chinese firms.

According to a corporate statement released on Thursday, the company registered a net income of €4 billion ($4.6 billion), reflecting a 29% decrease compared to the same timeframe in the previous year. This marks the third consecutive mid-year downturn for the carmaker.

BMW indicated that the tariffs imposed by President Donald Trump in April on automobiles and automotive components imported into the US significantly affected its financial outcomes.

Vehicle manufacturers across the European Union are still responding to the recent 15% tariff arrangement reached between Washington and Brussels, which is scheduled to be implemented in August.

The agreement, finalized on Sunday, has triggered criticism throughout the EU, with several European officials labeling it “scandalous” and “a disaster,” arguing it failed to extract any meaningful benefits from the United States.

Although BMW did not specify the exact financial impact of the US tariffs during the first half, the company cautioned that trade-related expenses might reduce its automotive profit margin by as much as 1.25 percentage points this year — a loss that could amount to several billion euros.

Chief Executive Officer Oliver Zipse acknowledged the agreement on tariffs but warned that the levies continue to restrict exports and negatively influence consumers.

The company also pointed to substantial “competitive pressure,” especially originating from China.

Other prominent German automakers reported even more significant downturns.

Volkswagen and Audi experienced earnings declines exceeding one-third, while Mercedes saw its profits nosedive by over 50%.

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