The U.S.-Chinese cease-fire left exporters with crippling tariffs, worsening a slowdown for light-industry factories caused by China’s shift to advanced manufacturing.

U.S. and Chinese officials agreed to seek an extension of their 90-day tariff truce on Tuesday, following two days of what both sides described as constructive talks in Stockholm aimed at defusing an escalating trade war between the world's two biggest economies that threatens global growth.

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.

BMW said Thursday its profits slumped by a third in the second quarter as the German premium carmaker was hit hard by falling sales in key market China and US tariffs.

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.