BMW recently told U.S. dealers that the company will bear the added tariff costs of importing vehicles from Mexico to the United States in at least the next few weeks.
The German automaker said in a notice sent to dealers on March 12 that some of its models produced in Mexico will be subject to new tariffs on Mexican and Canadian products, including BMW 3 Series sedans and 2 Series Coupe, which also covers the M2 high-performance coupe. These two models account for about 12% of BMW’s sales in the United States.
BMW said it would “price protection” the vehicles until May 1, meaning that tariff costs will not be passed on to dealers and consumers during this period.
But a BMW spokesman added: “However, if the tariff situation remains the same, we may need to reassess it later.”
Trump imposed a new 25% tariff on Canadian and Mexican goods in early March, but the tariff is currently only applicable to cars that do not comply with the rules of the US-Mexico Free Trade Agreement, which requires most of the parts of the vehicle to be purchased in North America. Despite this, BMW and several other car brands have been affected by the new tariffs.
A BMW spokesman said that cars produced in the United States and Mexico do not comply with the rules of the trade agreement, which would put it in high tariffs. The spokesman added that about 10% of BMW’s car sales in the United States are imported from Mexico.
BMW has objected to Trump’s new tariffs, which the company previously said in a statement: “At the end of the day, these tariffs will harm consumers, make products more expensive and lack innovation.”
In addition to BMW, research shows that so far the Trump administration’s new trade barriers, including tariffs on cars imported from China, have had limited impact, affecting only a small percentage of vehicles sold in the United States. According to relevant auto companies, other brands of affected models include Audi, Volvo, Buick and Lincoln.