Germany's BMW maintained its full-year guidance on Thursday despite U.S. tariffs and quarterly earnings dropping by a third, arguing that its large manufacturing presence in the country gives it an edge over rivals.

The Munich-based manufacturer was one of the few carmakers to include the financial impact of US car tariffs in its initial forecast in March that profits would broadly match last year’s. In May, it forecast that the higher tariffs Trump imposed on EU vehicle exports to the US would come down by July — a prediction that came broadly true as the two sides reached a deal on Sunday to reduce the tariff rate from 27.

As President Donald Trump prepares to announce new tariff increases, the costs of his policies are starting to come into focus for a domestic manufacturing sector that depends on global supply chains,

In rolling out the most aggressive tariff regime in the US in nearly a century, President Donald Trump has leaned heavily on emergency powers that had never been used before to impose import taxes.

The US is seeing increased tariffs income, but there are signs of some countries diverting trade from America.