The biggest auto losers in Trump's trade war so far: Luxury brands

The BMW 3 Series once topped the list of the world's bestselling premium cars. Today, the sporty sedan finds itself on a less-desirable list: tariff victim.

- Ryan Felton & Christopher Otts

About a dozen foreign-made models, including the sporty, relatively affordable BMW 3, are ensnared in President Trump's trade war. That is because the German sedans made in a Mexican factory don't meet the U.S.-Mexico-Canada free-trade agreement rules that won many automakers a brief reprieve from new 25% tariffs that went into effect earlier this month.

In 2024, the BMW imported roughly 150,000 vehicles from the European Union to the U.S., subject to a 27.5% tariff, potentially adding more than $10,000 to the price tag.

For now, BMW won't stick customers with the added cost. The car maker will fully absorb the extra 25% duty until May 1, BMW's North American division told dealers.

Tom DeFelice III, who co-owns the Circle BMW in Eatontown, N.J., said the company's pledge to absorb tariffs is a relief—at least for a while.

"It gives us tremendous certainty for the next two months," he said. "Who knows what happens after that?"

Billion-dollar factory

A sporty version of the 3 Series was used in a chase scene from a "Mission Impossible" movie. The model was so popular it accounted for more than 40% of BMW's total sales before SUVs gained more favor over sedans in recent years.

In 2019, BMW opened its new Mexican plant where the 3 Series is assembled, spending more than $1 billion on the factory. A year later, the Trump-negotiated USMCA took effect, requiring that a certain percentage of a vehicle's parts come from North America, among other rules.