Volkswagen expects its vehicles produced in North America to be exempt from the 25% tariffs the Trump administration has imposed on imports from Mexico and Canada, but other automakers, including BMW,

Volkswagen said on Thursday that its vehicles made in North America will likely avoid being subject to the 25% tariffs U.S. President Donald Trump has imposed on imports from Mexico and Canada, but other carmakers,

Last week, it was announced that President Donald Trump's new 25% tariffs on Mexico and Canada would exempt vehicles that comply with the USCMA trade deal. German carmaking giant Volkswagen told CNBC that its operations meant it would be exempt from the levies.

BMW has fallen victim to President Donald Trump’s whipsawing tariff policy. The stock sank as much as 5% Friday after Reuters reported that vehicles shipped by the company from Mexico might not comply with the United States Mexico Canada Agreement.

BMW appears to not comply with the requirement of 75% of a vehicle's parts originating from North America to avoid the tarriff

The president said he would pause a 25 percent tariff on cars coming from Canada and Mexico under a trade pact for one month, while other levies stay in place.

Volkswagen's factory in Puebla, Mexico, made nearly 350,000 cars in 2023, including the Jetta, Tiguan and Taos, all for export to the U.S. In Canada, Volkswagen is building a battery gigafactory in Ontario, with output to begin by 2027.

Honda might move the production of the next-generation Civic to its facility in Greensburg, Indiana, following Trump administration's tariffs proposal

The United States' proposed tariffs on Canada and Mexico will take effect on Tuesday, but President Donald Trump will determine whether they would be set at the proposed 25%, Commerce Secretary Howard Lutnick said.