Photo: dpa
Automotive giant Volkswagen has said that its vehicles manufactured in North America are likely to be exempt from the 25% duty that US President Donald Trump plans to impose on imports from Mexico and Canada. At the same time, other automakers, such as BMW and Mazda, may suffer significant financial losses due to new trade restrictions. This was reported by Reuters.
Volkswagen avoids tariffs, BMW does not
Trump has announced a one-month delay in tariffs for manufacturers that comply with the rules of origin under the US-Mexico-Canada Agreement (USMCA). A Volkswagen spokesperson assured that the company meets these requirements and will be able to avoid duties.
BMW, on the other hand, could be hit by the new tariffs. A spokesperson for the group said that cars made in the US and Mexico do not comply with USMCA rules, making them vulnerable to a 25% duty.
Mazda is waiting for official clarification
Mazda has so far been granted a 30-day exemption for the Mazda3 and CX-30 models, which are manufactured in Mexico. However, the company is awaiting further explanations from the US authorities to see if its vehicles will be subject to sanctions.
How the new tariffs will affect car manufacturers
Major automakers, including General Motors, Ford and Stellantis, actively lobbied for a temporary exemption from the new tariffs and welcomed Trump’s decision to delay them.
However, the situation is much more complicated for German companies. Audi, which manufactures the Q5 in Mexico, has not yet commented on the compliance of its vehicles with the USMCA. Porsche and Mercedes-Benz have also refrained from making official statements on whether their imported vehicles will be subject to the new trade restrictions.
Volkswagen’s battery manufacturing facility in Canada, which is currently under construction, was supposed to supply products to the US market, but the introduction of tariffs could complicate this process.
Uncertainty for the market
Experts predict that the new duties may lead to higher prices for imported cars and put additional pressure on automakers that depend on the supply of spare parts and finished cars from Mexico and Canada. If the tariffs come into force, US buyers may face a significant increase in prices for popular European brand models.
