According to media reports, BMW has recently informed its U.S. dealers that the company will absorb the additional tariff costs on vehicles imported from Mexico to the U.S. for at least the next few weeks.
In a notice sent to dealers on March 12, the German automaker stated that certain models produced in Mexico, including the BMW 3 Series sedan and the 2 Series coupe-specifically the high-performance M2 variant-will be subject to the new tariffs imposed by the Trump administration on products from Mexico and Canada. These two models account for approximately 12% of BMW's U.S. sales.
BMW has announced a "price protection" policy for these vehicles until May 1, meaning that the company will not pass the tariff costs on to dealers or consumers during this period.
However, a BMW spokesperson added, "If the tariff situation remains unchanged, we may need to reassess our approach."
In early March, former U.S. President Donald Trump imposed a new 25% tariff on goods from Canada and Mexico. However, this tariff only applies to vehicles that do not meet the rules of the United States-Mexico-Canada Agreement (USMCA), which requires a significant portion of a vehicle's components to be sourced from North America. Despite this, some BMW models-as well as those from other automakers-are affected by the new tariffs.
A BMW spokesperson explained that vehicles manufactured by BMW in both the U.S. and Mexico do not fully comply with the USMCA rules, making them subject to high tariffs. The spokesperson also noted that approximately 10% of BMW's U.S. vehicle sales come from Mexico.
In response to Trump's new tariffs, BMW has voiced its opposition, stating in a previous statement: "Ultimately, these tariffs harm consumers by making products more expensive and less innovative."
Beyond BMW, research suggests that the impact of the Trump administration's new trade barriers-including increased tariffs on vehicles imported from China-has so far been limited, affecting only a small portion of vehicles sold in the U.S. According to various automakers, other brands impacted by these tariffs include Audi, Volvo, Buick, and Lincoln.
