BMW Says It Won't Make Customers Pay Tariff Costs
BMW is shielding U.S. dealers and consumers from the financial impact of new tariffs on its Mexico-built models, at least for now.
Key Points
- BMW will absorb the cost of new 25% tariffs on its Mexico-built 3 Series and 2 Series models, including the M2, until May 1, shielding U.S. dealers and consumers from price hikes.
- The tariffs, implemented by the Trump administration in early March, apply to vehicles that do not meet USMCA regional content requirements, affecting about 12% of BMW’s U.S. sales.
- BMW warned that it may reassess its position after May 1 if the trade situation remains unchanged, while other automakers, including Audi, Volvo, Buick, and Lincoln, also face new tariff-related challenges.
According to the Wall Street Journal, the German automaker has informed its dealer network that it will absorb the added costs of President Trump’s newly imposed 25% tariffs on automobile imports from its Mexican facility in San Luis Potosí until May 1.
The tariffs, which took effect in early March, apply to vehicles that do not meet the regional content requirements of the United States Mexico Canada Agreement (USMCA). BMW has confirmed that two of its key models—the 3 Series sedan and 2 Series coupe, including the M2—fall under the new levies. These vehicles account for about 12% of BMW’s U.S. sales.
In a message to dealers, BMW assured them that it would “price protect” these models, meaning that the tariff costs will not be passed down to dealerships or consumers for the time being. However, the company warned that if the tariff situation remains unchanged beyond May 1, it may need to reconsider its approach. BMW clearly views the current regulatory conditions as temporary and expects a change to occur before the summer.
Other automakers, including Volvo, Buick, and Lincoln, also have models subject to increased duties, though for the most part, the increases are due to Chinese assembly.
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An experienced automotive storyteller and accomplished photographer known for engaging and insightful content. Michael also brings a wealth of technical knowledge—he was part of the Ford GT program at Multimatic, oversaw a fleet of Audi TCR race cars, ziptied Lamborghini Super Trofeo cars back together, been over the wall during the Rolex 24, and worked in the intense world of IndyCar.
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