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 Trump’s trade policies as a “horror show,” warning they might push Germany into recession. French central bank governor Francois Villeroy de Galhau also predicted a negative impact on the U.S. economy. The trade conflict has already created economic uncertainty, causing businesses and consumers to hold back on investments and hiring. Portfolio manager Bill Campbell warned that companies are delaying decisions until there is more clarity on tariff policies. Stock markets have reacted negatively, with the S&P 500 dropping over 10% from its February peak, while European markets remain relatively stable. As tensions grow, EU trade chief Maros Sefcovic is set to speak with U.S. officials to discuss the tariff dispute. Both sides face economic risks, with Britain’s economy already showing signs of contraction. Analysts warn that prolonged trade battles could slow down global growth, increasing fears of a broader economic downturn.