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.