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.