Donald Trump’s on-again, off-again tariffs will raise new car prices, but some consumers might not immediately feel the pinch. BMW told its dealers that it will not raise prices on certain vehicles imported into the United States from Mexico until May 1.
According to The Wall Street Journal, BMW will “price protect” the 3 Series and 2 Series it imports until the end of April. It won’t pass along the cost of the tariffs to dealers or consumers. A company spokesperson told the publication that it “may need to reassess” that decision if the tariffs remain as they currently are, so higher prices could come eventually.
Photo by: BMW
Ford CEO Jim Farley echoed similar sentiments about the effects of tariffs. Companies can manage in the short term, but a prolonged implementation could cause chaos in the industry. Farley has said the tariffs would mean higher prices for consumers, job losses for workers, and “blow a hole in the US industry that we have never seen.”
Trump has threatened to levy tariffs on imported cars, imposing and pausing their implementation twice now for Canada and Mexico. However, automakers can’t avoid the tariff on all imported steel and aluminum into the country, and the pause on autos only lasts until April 2. That’s the same day a 25-percent tariff on all imported cars goes into effect, leveling the playing field between domestic and foreign automakers.
Even though the tariffs aren’t in effect just yet, consumers and dealers are reacting. One Stellantis dealer recently told Fox Business that “nobody is gonna buy” a truck that now costs $20,000 more thanks to a tariff. That’s a big financial pill to swallow that will take time to sort out.
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