Could proposed tariffs make BMW prices in the US go up?

[IndyRed128i]

Wondering this especially based on how BMW's currently cost more for this very reason.

[Vindicator3]

Could they? Absolutely.

NYT had an article today on how businesses were preparing and they actually had a quote from the BMW CEO who, in contrast to others interviewed, seemed less worried so maybe they have plans other than to just pass the extra cost on to the buyer. Way too early to tell of course.

[DanG]

Remember that most US BMWs are either made in North Carolina or Mexico. That may be why BMW doesn’t seem worried.

[BMWbiker]

Short answer: BMW builds many cars in the U.S. Tariffs shouldn’t affect them. (I could be proved wrong.)

[alex2364]

Just because a car is made in the US doesn’t mean it won’t be affected by tariffs when it uses plenty of parts from overseas.

[BlkGS]

Any discussion on this right now is just hysteria.


BMW is in a far better situation than most automakers as most US production is built here, and much of the supply chain is here or in Europe. On the other hand you have Lincoln or Buick that are importing cars built in China, which will be effectively unsellable. Good riddance.

[BMWCCA1]

Originally Posted by DanG

Remember that most US BMWs are either made in North Carolina or Mexico. That may be why BMW doesn’t seem worried.

Umm, try South Carolina.

Actually, all X1, X2, Z4, 5-series, 7-series, and 8- or 6-series (whatever they choose to call them) come from Europe. I don't remember the President-elect saying Mexican-made products would be exempt from tariffs. So, basically, that means the only exempt BMWs would be those from Spartanburg, at this time that would be X3, X4, X5, and X7. And since most of their powertrains get air-lifted into the US from foreign markets, who knows what to expect.

[DanG]

Thanks for the correction.

[RED_Y_]

My biggest concern would be be electronics, like screens, sensors, cameras, radars, switches and many other. If such tariffs are imposed its almost guaranteed that we will see price increase, just because how computerized modern cars are. Yes BMW doesn't have to be as worried as lets say GM or Ford who build certain models in China, but we most certainly see impact of this.

[jcracken]

In terms of the cars themselves, Volvo was able to leverage a loophole in tariff law that meant for every vehicle built here and exported to another nation, they could import a vehicle made somewhere else without paying a tariff. So some of that may start to occur.

Of course, throwing a tariff on Mexico (which Trump said he would do during the campaign) would violate NAFTA, so he'd either need to have it repealed (impossible if the GOP have a small majority in the House, which is looking like they will), or get sued over it and likely have to stop.

Even vehicles built in EU and other nations that are able to enjoy that type of freedom have a good legal case that even this SCOTUS will be hard pressed to get out of.

[metrixBMW]

Less than half of BMW's production is here in the US and a blanket 10% tariff on large ticket items is huge so yea I'm a little concerned.

[Chilled]

As a non American watching the situation, it feels like US is now entering the Finding Out stage of Fucking around. Good Luck.

[FrankMstein]

Originally Posted by BMWCCA1

Umm, try South Carolina.

Actually, all X1, X2, Z4, 5-series, 7-series, and 8- or 6-series (whatever they choose to call them) come from Europe. I don't remember the President-elect saying Mexican-made products would be exempt from tariffs. So, basically, that means the only exempt BMWs would be those from Spartanburg, at this time that would be X3, X4, X5, and X7. And since most of their powertrains get air-lifted into the US from foreign markets, who knows what to expect.

Do not forget the G87 M2 is made in SLP Mx.

[FrankMstein]

Originally Posted by Chilled

As a non American watching the situation, it feels like US is now entering the Finding Out stage of Fucking around. Good Luck.

Yeah...can't wait to see the largest and best economy (even post covid) in the world drag every other countries econ down with tarifs. Major fail if that promise is kept. Such a 6x bankruptcy mo "businessman". Can't believe people fall for this crap. Get a BS detector installed, please.

[c1pher]

There are a lot of levers the manufacturers have to offset tariffs. It could be margins, it could be shifting some production, it could be additional automation etc etc.

[Bc2005]

Once his business cronies get beyond the Trump campaign rhetoric, I hope they realize that from the consumer standpoint, a tariff will be simply like a tax that increases the price of goods. It does not save the consumer any money.

A tariff is designed to make American goods more price-competitive, since it increases the price of similar foreign goods. It is a political effort to support “buy American”, not an attempt to reduce consumer costs.

[BMWCCA1]

Originally Posted by Bc2005

A tariff is designed to make American goods more price-competitive, since it increases the price of similar foreign goods. It is a political effort to support “buy American”, not an attempt to reduce consumer costs.

But, to be honest, that's not how it was proposed as a campaign promise, was it? Essentially we were told the tariffs would pay for everything from day-care to deportation. Why are so many just now becoming aware of the truth?

[Chihuahua]

Easy solution. Go buy an E-chassis car that's already here. They're better anyway.

[jcracken]

Originally Posted by BMWCCA1

But, to be honest, that's not how it was proposed as a campaign promise, was it? Essentially we were told the tariffs would pay for everything from day-care to deportation. Why are so many just now becoming aware of the truth?

Consistently tariffs during the campaign polled around 70-80% support, because the average American viewed it as a "hurt other country, feel good about my country" fee. Very few realize that a. the tariff is paid on the American side and b. the economic benefits are iffy at best and the downside is very real.

The Harris campaign tried to message on it as a "Trump sales tax" but none of that took hold.

[BlkGS]

Originally Posted by jcracken

In terms of the cars themselves, Volvo was able to leverage a loophole in tariff law that meant for every vehicle built here and exported to another nation, they could import a vehicle made somewhere else without paying a tariff. So some of that may start to occur.

Of course, throwing a tariff on Mexico (which Trump said he would do during the campaign) would violate NAFTA, so he'd either need to have it repealed (impossible if the GOP have a small majority in the House, which is looking like they will), or get sued over it and likely have to stop.

Even vehicles built in EU and other nations that are able to enjoy that type of freedom have a good legal case that even this SCOTUS will be hard pressed to get out of.

A good legal case for what? The president has authority to set tariffs, for any reason. There is no legal case, just begging for mercy.

NAFTA could be renegotiated again, though frankly I don't think NAFTA would be affected. It would be used a sleveeage to get Mexico to fall in line with regards to drugs and illegal immigration through Mexico.

[IanH]

Am I living in a parallel universe where NAFTA is still in place?

Not a single mention of the USMCA?

Man, that guy who negotiated the USMCA should get better at negotiating!

Anyway, as this is like the 4th or 5th thread on this topic, maybe someone should give the real answer and we can stop talking about it...

No the tariffs will not go into place as campaigned upon, because like most campaigns by most politicians 95% of what was promised was a lie.

[BlkGS]

Originally Posted by jcracken

Consistently tariffs during the campaign polled around 70-80% support, because the average American viewed it as a "hurt other country, feel good about my country" fee. Very few realize that a. the tariff is paid on the American side and b. the economic benefits are iffy at best and the downside is very real.

The Harris campaign tried to message on it as a "Trump sales tax" but none of that took hold.

The tariffs will be a good thing. The American middle class was built on manufacturing, and has declined on off shoring it all. It will hurt in the short term, and the countries that have enjoyed manufacturing being outsourced to them will lose in the end, but it's a good thing for Americans to have good paying jobs in manufacturing, and it's even better if the US then exports it's products globally.

To be clear, the big loser in all of this is China. They have made a consistent process out of abusing unpaid and forced labor, exporting products below cost to drive out competition, and stealing IP vs developing it for themselves. As the doors shut to Chinese exports, money stops flowing in to the country, and it becomes harder for the CCP to prop up their charade. They'll probably still stay in power through fear and brutal crackdowns on civilians, but it's a step.