Trump Raises EU Auto Tariffs to 25% — Here’s What It Could Mean for BMW

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May 2026 01 22:32

Trump Raises EU Auto Tariffs to 25% — Here’s What It Could Mean for BMW

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U.S. President Donald Trump announced Friday he’s hiking tariffs on cars and trucks imported from the European Union to 25%, claiming the bloc hasn’t fully honored their trade agreement. The timing is challenging for automakers, and for BMW as well, with the all-new iX3 scheduled to launch next week which is built in Debrecen, Hungary.

The iX3 is rolling off the line at BMW’s brand-new Debrecen plant, which opened last year as the company’s most advanced production facility yet. Hungary is an EU member state, which puts the iX3 squarely in the crosshairs of the new tariff. When BMW first teased U.S. pricing for the iX3 last year, it pointed toward the $60,000 range — a figure that made it a competitive alternative to the Model Y and Audi Q4 e-tron. A 25% tariff on a $60,000 car will be a significant increase if approved. Whether BMW absorbs that, passes it to buyers, or some combination of both remains to be seen. BMW will announce the pricing of the iX3 on May 6.
Other OEMs Are Impacted As Well

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BMW isn’t alone in this. The C-Class and S-Class from Mercedes are also European-built models hitting the U.S. market, and BMW told investors back in March it saw little room to improve profitability this year given existing tariff pressure and a tough China market. This latest move makes that picture worse.

Trump’s post on social media Friday specified that vehicles built in U.S. facilities would face no tariff — the same lever he’s been pulling to pressure foreign automakers into domestic investment. BMW does manufacture its X5, X6, X7, and XM at its Spartanburg, South Carolina plant, which gives it some insulation. The iX3, though, is a different story, but that could also change in 2027 when the San Luis Potosi plant in Mexico will begin producing the new electric crossover.

EU lawmakers pushed back immediately. Bernd Lange, who chairs the European Parliament’s trade committee, said the U.S. has repeatedly breached their agreement — pointing specifically to the expanded 50% metals tariffs rolled out last August — and called Trump’s latest move a demonstration of U.S. unreliability. The EU side says it’s still on track to ratify the trade deal, potentially by June.

The 2026 BMW iX3 (NA5) is priced from approximately €70,900 in Germany for the 50 xDrive, following a €2,000 price increase due to high demand. Lower-tier iX3 40 models are expected to start at €63,400, and fully loaded models can exceed €112,000. Deliveries in Europe began in spring 2026.

First published by https://www.bmwblog.com


Source: https://www.bmwblog.com/2026/05/01/trum ... mw-impact/
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