There are no winners in trade wars,” Kallas said on the sidelines of a G7 meeting in Canada. “Who is laughing on the side or looking at the side is China. It’s really benefiting from the U.S. having a trade war with Europe.

The leaders of both Canada and Mexico got on the phone with President Donald Trump this past week to seek solutions after he slapped tariffs on their countries, but China’s president appears unlikely to make a similar call soon.

The German luxury carmaker said net profits tanked by more than a third last year, and warned that 2025 was also likely to be challenging.

China on Thursday urged Washington to engage in a "dialogue" with Beijing on how to resolve President Trump's spiralling trade war and geopolitical tensions.

China's commerce minister says Beijing will not yield to bullying and its economy can weather tariffs and other challenges, though there are “no winners in a trade war."

The inconsistent trade policy coming from Washington leaves Beijing with no clear path to take to get out of the crosshairs. That leaves retaliation as the most likely response.

This comes as BMW along with other European carmakers are bracing for impact from US President Donald Trump’s planned tariffs on vehicles imported to the US.

At the Group of Seven (G7) meeting in Canada, European Union foreign policy chief Kaja Kallas said the real winner of the ongoing tariff war is China.