BMW Will Bear Tariffs on Vehicles Manufactured in Mexico | Carscoops

      BMW has informed its U.S. dealers that it will absorb the U.S. tariffs imposed on vehicles manufactured in Mexico.

      The "price protection" initiative is expected to be in effect until May 1, but the future beyond that remains uncertain.

      Several models, including the 2-Series Coupe, M2, and 3-Series Sedan, are produced in Mexico.

      The ongoing trade tensions initiated by President Trump have created considerable fear and unpredictability, as these tariffs could significantly harm the automotive sector, particularly for companies that depend on vehicle imports from Canada and Mexico.

      On a more positive note, The Wall Street Journal indicates that BMW has communicated to its U.S. dealers that it will bear the cost of tariffs on Mexican-built vehicles for at least the "next several weeks," potentially saving consumers thousands.

      More: BMW Faces New Tariffs While VW and Stellantis Escape Hit

      BMW commenced production at its San Luis Potosí facility in April 2019, employing around 3,700 workers. This plant manufactures the 2-Series Coupe, M2, and 3-Series Sedan.

      Although coupes are not produced in large volumes, the 3-Series is a crucial model for the brand. Approximately 10% of BMW's U.S. sales stem from vehicles manufactured in Mexico.

      The aforementioned "price protection" plan is valid until May 1, but an extension appears unlikely. A spokesperson mentioned, “If the tariff situation remains unchanged, we may need to reevaluate after that date.”

      Therefore, if you are considering purchasing a Mexican-made BMW, swift action may be advisable. The rationale is evident, particularly when considering that the starting price for the 230i Coupe is $39,600, which would incur a $9,900 tariff if set at 25%. The 3-Series could face an even steeper cost with a base price of $45,950, translating to a potential tariff of $11,487.50.