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VW may avoid 25% Trump tariff, but BMW and others face trade levy
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VW may avoid 25% Trump tariff, but BMW and others face trade levy
Mar 6, 2025 3:16 PM

DETROIT, March 6 (Reuters) - Volkswagen

said Thursday that its vehicles made in North America will

likely avoid being subject to the 25% tariffs U.S. President

Donald Trump has imposed on imports from Mexico and Canada, but

other carmakers, including BMW, may not be exempt.

Trump granted a one-month reprieve on tariffs to automakers

who complied with the United States-Mexico-Canada Agreement

(USMCA) rules of origin this week, after saying such duties

would go into effect March 4. But which automakers will end up

being subject to tariffs isn't entirely clear.

A spokesperson for VW said its North American vehicles do

comply with the terms of the USMCA. A spokesperson for BMW

said vehicles made in the United States and Mexico do

not comply with the rules of the trade deal, potentially

subjecting it to the steep duties.

About 10% of BMW's U.S. sales are imported from Mexico, the

spokesperson said, adding that the company opposed the tariffs.

"In the end, they are detrimental to customers, making

products more expensive and less innovative," the company said

in a statement.

Detroit's automakers lobbied for such an exemption for

weeks, and praised Trump's announcement that they would receive

temporary relief.

Among German carmakers, the Volkswagen Group is the most

exposed to Trump's tariff threats on Mexico and Canada.

Its Audi and Porsche brands have no U.S. manufacturing base,

its VW passenger car brand's U.S. sales consist mainly of

imports from its Mexican plant, and its battery cell plant under

construction in Canada was set to deliver batteries to the

United States.

Audi, which has one plant in Mexico producing its Q5

SUV, was not immediately available for comment on whether the

cars produced there were USMCA-compliant.

Mercedes said it had not yet seen the details of

changes to the tariffs on imports from Canada and Mexico and

declined to say whether it complied with the USMCA.

Nissan Motor ( NSANF ) also declined to comment.

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