German automaker BMW warned Friday that it would take a big hit from trade wars between the United States, China and Europe this year, on top of weak Chinese demand,

German luxury carmaker BMW posted a steep drop in profit last year due to weakening sales in China and technical problems with braking systems. The company on Friday reported €7.7 billion ($8.6 billion) in after-tax profit,

BMW said newly imposed trade tariffs could dent the carmaker's earnings by 1 billion euros ($1.09 billion) this year, as escalating trade tensions between China, Europe and the U.S. take a mounting toll on global companies' finances.