BMW's Response to New US Tariffs: Price Protection Extended Through May
April 8, 2025
BMW of North America has announced its strategy to navigate the newly implemented tariffs on imported automobiles, offering stability to dealers and customers despite the challenging trade environment.
Tariff Implementation Timeline
President Trump's previously announced tariffs officially took effect on Thursday, April 3, 2025, impacting all imported automobiles. Additionally, foreign-made auto parts—including engines, transmissions, and powertrain components—will be subject to tariffs beginning May 3.
BMW's Price Protection Strategy
In response to these trade developments, BMW has committed to maintaining price stability through May production, with just one exception: Pricing will remain unchanged on all vehicles through May production
The only exception is a previously announced 4% price increase on the 2 Series Coupe (G42) and M2 (G87)
Details about June pricing will be communicated on April 22, coinciding with the next allocation run
Supply Chain Adjustments
BMW acknowledged that some Mexico-based production will experience delays into May. However, the company has prepared for this contingency: A 30-day supply of affected vehicles is already on the ground for April. This inventory buffer will allow BMW to maintain sales momentum despite production delays
Long-Term Planning
The statement from Sebastian Mackensen, President and CEO of BMW of North America, and Shaun Bugbee, Executive Vice President of Operations, emphasized the company's approach to the evolving trade situation: BMW is adopting a "measured and pragmatic approach" to the new trade environment.
The company is engaged in scenario planning that considers short-, mid-, and long-term developments
BMW has committed to providing transparent updates as new information becomes available
What This Means for Customers
For BMW customers and prospective buyers, this announcement offers several key takeaways:
Vehicle prices will remain stable through May production (except for the noted 2 Series models)
BMW is positioning itself to absorb some of the tariff impact rather than immediately passing costs to consumers.
The company appears confident in its ability to maintain inventory levels despite production challenges
This approach demonstrates BMW's commitment to market stability while adapting to changing trade policies. Customers interested in purchasing a BMW may benefit from the extended price protection period before potential adjustments are made for June production.
This blog post is based on information from an official BMW of North America statement dated April 2025.