In response to the new 25% tariff on vehicles imported from Mexico, BMW North America has told dealers that price protection is in place for Mexico-built models. Per a dealer bulletin, the M2, 2 Series, and 3 Series with production dates before May 1, 2025, will be price-protected—shielding buyers from immediate hikes.
As first reported by BMWBlog, after May 1, any Mexico-built BMWs arriving in the U.S. could face a total import duty of 27.5% (up from 2.5%), given the tariffs that took effect March 4. BMW has yet to outline a plan beyond that date. A BMW spokesperson told BMWBlog, “We’re not increasing prices for March or April… However, if the tariff situation remains as it currently is, we may need to reassess after that time.”
What that means is that US buyers could see a dramatic increase in the cost of the G42 2 Series and the G87 M2. For instance this tariff fueled increase would results in an M2 MSRP going from $65,500 to $81,875. For those curious, that’s a $5,175 over the $76,700 M3 and even $1,750 more than the $80,100 M4.
M2 and 2 Series Production at Risk
Why are we focusing on the M2 (G87)? Unlike the Mexican built 3 Series, all rear 2 series coupes are exclusively built at BMW’s San Luis Potosí plant in Mexico. That puts the it and 2 Series Coupe (G42) in a precarious situation because there are no alternative production sites to quickly shift to. This means that U.S. buyers have a higher likelihood of price increases unless BMW eats the costs—an unlikely long-term solution.
Could BMW Shift 3 Series Production?
The 3 Series (G20) has more flexibility, as it’s also produced in Munich. While BMW hasn’t commented, possible workarounds include:
• Shifting more U.S.-bound 3 Series production to Germany
• Sending Mexico-built 3 Series to Europe and keeping Munich-built models for the U.S.
But this all depends on Munich’s capacity and BMW’s global logistics strategy.
The Bigger Picture
BMW isn’t alone—Volkswagen, Honda, and Toyota also rely heavily on Mexican production and now face tough decisions. Do they absorb costs, pass them to consumers, or shift production?
For now, BMW’s price protection gives buyers a brief reprieve. But what happens after May 1? Will BMW make a major production shift, or will U.S. customers have to pay significantly more for cars like the M2 and 2 Series? With U.S. trade policy seemingly changing by the week, the answers are anything but certain.