BMW appears to not comply with the requirement that 75% of a vehicle's parts must originate from North America to avoid the tariff

Last week, it was announced that President Donald Trump's new 25% tariffs on Mexico and Canada would exempt vehicles that comply with the USMCA trade deal. German carmaking giant Volkswagen told CNBC that its operations meant it would be exempt from the levies.

Volkswagen's factory in Puebla, Mexico, made nearly 350,000 cars in 2023, including the Jetta, Tiguan and Taos, all for export to the U.S. In Canada, Volkswagen is building a battery gigafactory in Ontario, with output to begin by 2027.

Volkswagen said on Thursday that its vehicles made in North America will likely avoid being subject to the 25% tariffs U.S. President Donald Trump has imposed on imports from Mexico and Canada, but other carmakers,

The president said he would pause a 25 percent tariff on cars coming from Canada and Mexico under a trade pact for one month, while other levies stay in place.

BMW has fallen victim to President Donald Trump’s whipsawing tariff policy. The stock sank as much as 5% Friday after Reuters reported that vehicles shipped by the company from Mexico might not comply with the United States Mexico Canada Agreement.

Many imports from Canada and Mexico will be exempt from tariffs, as the president quickly reversed a sweeping trade action taken just two days ago after market turmoil.

Volkswagen's factory in Puebla, Mexico, made nearly 350,000 cars in 2023, including the Jetta, Tiguan and Taos, all for export to the U.S. In Canada, Volkswagen is building a battery gigafactory in Ontario, with output to begin by 2027.

Europe’s beleaguered automakers are also affected by high tariffs on imports from Mexico and Canada. Shares in Volkswagen, Mercedes-Benz and BMW all dropped early Tuesday, echoing the declines in U.S.

Shares of the world’s largest automakers, including Chevrolet-maker General Motors (GM) and Dodge-maker Stellantis (STLA), were hit hard at the

Honda might move the production of the next-generation Civic to its facility in Greensburg, Indiana, following Trump administration's tariffs proposal

The United States' proposed tariffs on Canada and Mexico will take effect on Tuesday, but President Donald Trump will determine whether they would be set at the proposed 25%, Commerce Secretary Howard Lutnick said.