BMW shields U.S. dealers from tariff impact until May 1

As automakers try to navigate tariff whiplash—BMW of North America is taking steps to shield its dealers from the impact—at least for now.

Driving the news: In an internal memo obtained by CDG News, BMW says it is “price-protecting” vehicles already in the dealer pipeline, as long as they were scheduled for production before May 1, 2025.

Why it matters: The North American auto supply chain is so intertwined that a single component can cross borders multiple times before reaching a finished vehicle. That complexity comes at a cost—potentially billions, according to some estimates. Automakers and suppliers could pass those costs to consumers, but with affordability already stretched thin, some are holding the line.

The details: These tariffs—which took effect on March 4 (for non-U.S. automakers), have already hit BMW’s 3-Series, 2-Series, and M2 models coming into America from Mexico—jumping from 2.5% to a steep 27.5%.

• And while BMW has been in talks with policymakers in Washington, D.C.,—for now—it's business as usual.

• Vehicles are still shipping, and the May allocation will be distributed to dealers on March 20.

Big picture: BMW likely sees these tariffs as temporary and is optimizing for pricing stability and brand experience rather than making short-term profit moves. By price-protecting pipeline vehicles, the company is aiming to shield dealers from immediate impacts while continuing to push back on the tariffs behind the scenes.

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