BMW has reported a 37% drop in annual net profit, highlighting concerns over weakened demand in the Chinese market. The company anticipates a €1 billion impact on earnings due to escalating tariffs and the ongoing trade war, which continues to challenge its margins. With forecasts pointing towards flat earnings in the upcoming fiscal year, BMW is bracing for further struggles linked to trade conflicts and declining sales in China. The CEO expressed cautious optimism regarding U.S. tariffs but acknowledged the ongoing challenges faced by the automotive industry.