VW may avoid 25% Trump tariff, but BMW faces trade levy

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VW may avoid 25% Trump tariff, but BMW faces trade levy

^{Published on Thursday, March 6th 2025 at 18:21 GMT by Reuters}

Volkswagen said Thursday that its vehicles made in North America comply with the United States-Mexico-Canada Agreement (USMCA), meaning they will likely avoid being subject to the 25% tariffs U.S. President Donald Trump has imposed on imports from Mexico and Canada which do not comply with the trade deal's rules.

The article from Reuters discusses how Volkswagen (VW) might avoid a 25% tariff on its electric vehicles (EVs) imposed by former U.S. President Donald Trump, while BMW could still face this trade levy. The tariff, which was part of Trump's broader trade war with China, targeted EVs assembled in China. VW has been shifting its production strategy by planning to manufacture its EVs in the U.S., specifically in South Carolina, thereby potentially circumventing the tariff. Conversely, BMW, which imports its EVs from China, would be subject to the tariff unless it also relocates production or finds another way to mitigate the impact. This situation highlights the ongoing trade tensions and the strategic adjustments automotive companies are making in response to U.S. trade policies.

Read the Full Reuters Article at:
[ https://www.reuters.com/business/autos-transportation/vw-may-avoid-25-trump-tariff-bmw-faces-trade-levy-2025-03-06/ ]

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