BMW is about to be criticized by new prices while VW and Stellantis dodge the blow

BMW does not seem to comply with the requirement of 75% of the parts of a vehicle from North America to avoid the Tarriff

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BMW will not be able to avoid new prices deployed by President Donald Trump on vehicles manufactured in Mexico and Canada, but it competes with Volkswagen and Stellantis. The irony is that BMW builds hundreds of thousands of vehicles in the United States each year and, in 2024, exported nearly 225,000 United States and crossover in international markets.

As part of the president’s attempts to encourage companies to produce more products in the United States, prices of 25% have recently been imported from Mexico and Canada. However, he quickly announced a 30-day stay for the automotive industry, revealing that cars built in accordance with the trade agreement of the United States-Mexico-Canada (USMCA) will be exempt.

Read: After saying that the Big 3 de Détroit were enthusiastic about the prices, Trump speaks to Big 3 and pause Prices

Thanks to the terms of this trade agreement, at least 75% of the parts of a vehicle must come from North America to bypass new prices. VW has confirmed that the cars it builds in North America conform and therefore avoid new prices of 25%.

“Our VW North American assembled vehicles comply with the original rules of the USMCA and are exempt from 25%prices,” VW in CNBC told. “As a world car manufacturer, we closely monitor the developments in North America and assess all the potential effects on the automotive industry and our company following the prices announced for the United States, Canada, Mexico and the European Union.”

BMW feels pain

Things are not so pink for BMW. Although it sells many of its American vehicles locally, around 10% of BMW sold in the United States are imported from Mexico, including series 2 and series 3. It describes the current commercial situation in North America as “very volatile and complex”, confirming that it would be one of the affected companies “.

“Our position remains unchanged: free trade, which has always been a guiding principle for the BMW group, is of immense importance in the world,” said the brand. “The prices, on the other hand, hinder free trade, slow down innovation and put a negative spiral in motion. In the end, they are harmful to customers, which makes products more expensive and less innovative. »»

UBS analysts suspect that the new prices will reach the BMW EBIT of around 400 million euros (~ 434 million dollars) before it increases potential prices.

Like VW, Stellantis avoided the new prices and thanked President Trump for the exemption linked to the USMCA.

“We share the president’s goal to build more American cars and create sustainable American jobs,” he said. “We look forward to working with him and his team.”