[Crazy1323]

I just saw where the US will be imposing a 25% tariff on vehicles imported into the US beginning April 3rd.

My car is on a ship right expected to hit Baltimore on 3/31 so hopefully I miss the Tariff. It will be interesting to see how this affects the price of vehicles entering the country on or after 4/3.

It will also be interesting to see how these tariffs work with BMW being the largest auto exporter in the United States.

[soulsea]

I just reached out to my dealer and he said all existing orders are price protected to the msrp of the day of the order.

Now I don't know how binding this is because usually that's just to mitigate annual msrp increases and I don't know that BMW can or will be willing to eat 25% on all existing orders, so I guess they could back out of the price protection. And of course could go away as quickly as they appeared, but just sharing what I have been told.

And of course any future orders will be affected as soon as BMW increases their prices.

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ETA: Fwiw I'm out if the car is 25% more than my order price.

[chicagofan00]

IIRC, BMW has already stated that they will absorb the increase in tariffs of their Mexico produced vehicles through May but will re-evaluate after that. I would assume they do the same for their other line of vehicles at the outset but they can’t keep absorbing it for the long term, that is for sure.

[Crazy1323]

When tariffs on vehicles imported from Mexico were enacted BMW offered price protection for those models produced before May 1st, but there is nothing requiring them to extend that courtesy to all models. This included the M2, 2 series, and 3-series.

It will be very,interesting to see how this plays out.

[Greer]

The tariff order wording says vehicles produced outside the USA, so how is that going to work for X5s made in Spartanburg?

[soulsea]

Originally Posted by Greer

The tariff order wording says vehicles produced outside the USA, so how is that going to work for X5s made in Spartanburg?

All US made vehicles are unaffected by todays announcement.

[Bluex]

I am really following this.

Is this on all auto imports, or just ones from Mexico and Canada?

My car is currently at the port in Bremerhaven waiting to be loaded. No way it will enter the US by the 3rd, obviously.

If this affects my M5 and BMW passes on that 25% tariff….well….changes the entire equation. I’ll be OUT.

[soulsea]

Originally Posted by Bluex

Is this on all auto imports, or just ones from Mexico and Canada?

All.

Again, I have been told that all orders in the system will be price protected, but again that could change.

[calbears]

Originally Posted by soulsea

All.

Again, I have been told that all orders in the system will be price protected, but again that could change.

There has been no communication from BMW NA (the importer) regarding this new tariff. There has been an announcement regarding Mexico built vehicles and price protection for production before May 1.

Expect there will be communication shortly. But there is nothing on German and Austrian (Z4) vehicles.

[Skilly]

Originally Posted by soulsea

All US made vehicles are unaffected by todays announcement.

yes and no. Tariffs are going to have wide reaching impact on them too just not at the end state. Unless X5 and ALL of its components are sole sourced in the US, its price to produce will increase dramatically, which will mean prices go up.

Not sure how "money will be pouring into our country" with a tariff. No getting around it; it's a tax on American people.

[E91toG05]

25% on an M5 is a serious hit. I have a deposit in line for an allocation on a touring... 25% increase will cause me to move on and call it a day and be happy with my 'Merican X5.

[TXSchnee]

Parts, including engines and transmissions, are included in the 25% tariff, per the NYT. This will hit all US made X vehicles too. It won’t hit as bad, but it will raise prices. Still waiting for an allocation, tariffs will promot me to pass if the dealer is requiring a deposit (no deposit and I will order, hedging bets the tariffs disappear sooner or later).

[iifymbro]

glad to have a order in 112 status, hope it's true that existing orders won't get hit.


the fact that it's a blanket tariff on all imports instead of from specific countries makes me think it might stick around for awhile.

[soulsea]

I picked the wrong day to get a GT3 Touring allocation.

I guess I'll pass on it.

[Skilly]

This is going to hit ALL cars, not just imports.

There is no such thing as a car build with all of its parts in the US. The only car company that comes close is good ole Tesla...weird, how that works. The big 3 move back and forth between Canada and Mexico sometimes dozens of times. Add, Lumber, steel, aluminum, finished products, partially finished parts.

If these stay in place, car prices are the least of our worries. This is a very poorly thought out plan that will cripple economy.

[iifymbro]

Originally Posted by soulsea

I picked the wrong day to get a GT3 Touring allocation.

I guess I'll pass on it.

[Crazy1323]

I think I remember reading years ago that the vehicle with the highest US content is a Honda accord

[ctelimad]

The problem is the increase in parts means increase in repair costs and that eventually increase insurrance rates
So we are not only talking about new car prices but also insurrance rates
Also this will increase the demand on used cars and then used car prices will go up
So eventually will be paying more for everything lol
I just bought my boxter gts last week

[DocWeatherington]

hat was also stated he is working to get the loan interest paid on US made cars a tax write off.

Net net while this will suck now. LONG TERM it is better as more things will be made here with that more jobs. Manufacturers will have to level the costs across the lineups and produce the volume sellers here. Bmw is the largest exporter by volume of US made cars. So, I dont see a major price increase across the SUV lineup.

I have no issues with this. EU charges a 10% tariff on our autos and we used to charge them 2.5..so there's is 4 times higher currently. Yeah there is the chicken tax on light duty pickup trucks but that's an North American product.

With that whatever they counter with how many US made vechiles are sold overseas? So its moot.

https://www.bmwgroup-werke.com/spart...-Woodruff.html

[Bluex]

Originally Posted by DocWeatherington

Net net while this will suck now. LONG TERM it is better as more things will be made here with that more jobs. Manufacturers will have to level the costs across the lineups and produce the volume sellers here.

I have no issues with this.

With that whatever they counter with how many US made vechiles are sold overseas? So its moot.

Moot huh? Do you currently have an M5 at the Bremerhaven port waiting to come over? Have you configured your car, negotiated a deal and have waited excitedly for this M5 to arrive in just a few weeks time only to be struck with the possibility of a 25% tax being added to the price? (Because despite rumors there is no word yet on whether BMW will absorb anything yet for existing orders on this round of tariff affected vehicles….hopefully they will)

Are you in the position where you may have to not accept the vehicle because you can’t afford to or won’t pay a 25% tax?

If you answer yes, great on you. You clearly must have such deep pockets where this is all trivial “let them eat cake” bullshit.

But if the answer is no you don’t and aren’t in the position that many of us are in right now, it’s damn easy for you to say that you don’t have any problems with it and it will all come out in the wash.

I’ve waited awhile for this car, was excited for a delivery in a few weeks, was paying cash for the car and now I may just have to cancel the whole deal and keep that $140k instead of spending it.

But hey, my man, glad it’s all good to you.

[CarlosM4]

Originally Posted by Skilly

yes and no. Tariffs are going to have wide reaching impact on them too just not at the end state. Unless X5 and ALL of its components are sole sourced in the US, its price to produce will increase dramatically, which will mean prices go up.

Not sure how "money will be pouring into our country" with a tariff. No getting around it; it's a tax on American people.

The logic is fair though. If you tax my cars, I tax yours back.

[WWM3]

This will raise the price of new and used cars - both foreign and domestic. The cost to repair your vehicles will also increase. Insurance costs will also increase. This is the long-term outcome for this isolationist/nationalist policy. All for the sake of a few thousand manufacturing jobs, apparently. The investment publication Barron's wrote last night that this is the worst possible outcome for the auto industry and the global economic consequences could be severe.