Volkswagen (VOWG_p.DE) said Thursday that its vehicles made in North America comply with the United States-Mexico-Canada Agreement (USMCA), meaning they will likely avoid being subject to the 25% tariffs U.S. President Donald Trump has imposed on imports from Mexico and Canada which do not comply with the trade deal's rules.
A spokesperson for BMW (BMWG.DE) said vehicles made in the United States and Mexico do not comply with the rules of the trade deal, potentially subjecting it to the steep duties.
About 10% of BMW's U.S. sales are imported from Mexico, the spokesperson said, adding that the company opposed the tariffs.
"In the end, they are detrimental to customers, making products more expensive and less innovative," the company said in a statement.
Trump granted a one-month reprieve to automakers who complied with the USMCA's rules of origin this week, after saying such duties would go into effect March 4.
The Volkswagen Group is the most exposed among German carmakers to Trump's tariff threats on Mexico and Canada.
Its Audi and Porsche brands have no U.S. manufacturing base, its VW passenger car brand's U.S. sales consist mainly of imports from its Mexican plant, and its battery cell plant under construction in Canada was set to deliver batteries to the United States.
Audi, which has one plant in Mexico producing its Q5 SUV, was not immediately available for comment on whether the cars produced there were USMCA-compliant.
Nissan Motor (7201.T) also declined to comment.
