German carmaker BMW said on Friday it expected tariffs to cost it 1 billion euros ($1.09 billion) this year, while European officials warned the U.S. economy would be the biggest loser if President Donald Trump pursues an "idiotic" trade war.

The EU's trade chief Maros Sefcovic is due to speak with U.S. Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamieson Greer on the spiralling tariff conflict in a call scheduled for 1030 ET (1530 GMT) on Friday.

BMW is shielding U.S.dealers and consumers from the financial impact of new tariffs on its Mexico-built models, at least for now.

BMW's Chief Financial Officer said on Friday that the added tariffs on U.S. imports imposed up until March 12 would reduce its earnings margin in the autos segment by one percentage point, according to a copy of his speech seen in advance.

BMW does not expect the recently imposed U.S. tariffs to stay in effect until year-end. The carmaker's 2025 earnings margin forecast of 5-7% for its automotive sector is predicated on the current tariffs remaining unchanged.

BMW AG expects escalating trade conflicts between the US, Europe and China to cost the carmaker about €1 billion ($1.1 billion) this year, Chief Executive Officer Oliver Zipse said.

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.