BMW Halts U.S. EV Production Due to Tariff Concerns, Current Prices Remain

BMW has announced a temporary pause in its electric vehicle (EV) production in the United States, effective May 2025, as the automaker navigates the uncertainties surrounding the newly implemented automotive tariffs by the Trump administration. Despite this production halt, BMW has assured dealers that it will not raise prices on the majority of its imported vehicles, at least for the time being.

Production Pause Due to Tariff Concerns

BMW, which recently celebrated the production of its seven millionth vehicle in the US, is now grappling with the potential impact of the 25% tariff on vehicle imports. According to a memo sent to dealers and reported by Automotive News, BMW will “postpone” EV production in the US during May. While the memo did not explicitly state the reason for the pause, it is widely attributed to the tariff-related uncertainty.

It is important to note that BMW’s current EV lineup in the US, the i4, i5, i7, and iX, are all manufactured in Germany.

Strong EV Sales Despite Production Pause

Despite the production pause, BMW has experienced relatively strong EV sales in the US market. In the first three months of 2025, the automaker sold 13,538 EVs, representing a 26% increase compared to the same period in 2024. The i4 was BMW’s top-selling EV, with sales surging 57% to 7,125 units, followed by the iX with 3,626 units. This contrasts with some competitors, like Mercedes-Benz, which saw a 58% year-over-year decline in US EV sales during the same period.  

Price Freeze Amidst Market Uncertainty

BMW has also informed its dealers that it will maintain current pricing on most imported vehicles through June 2025. This decision comes at a time when most major automakers, including GM, Volvo, Mercedes-Benz, Volkswagen, and Stellantis, have withdrawn their financial guidance for the year due to the significant uncertainty created by the new tariffs.  

Sebastian Mackensen, President & CEO of BMW of North America, emphasized the company’s strong position in the US market, highlighting that the majority of the vehicles BMW sells in the US are also assembled within the country.  

Broader Industry Impact

BMW’s decision to pause US EV production and freeze prices reflects the broader uncertainty and potential disruptions facing the automotive industry as it grapples with the implications of the new tariffs. As Ford CEO Jim Farley noted, the industry is still trying to understand the full impact and determine the best course of action, even as some tariffs have unexpectedly eased. BMW’s temporary production halt serves as a concrete example of the immediate measures automakers are taking to navigate this evolving trade landscape.

The coming weeks and months will be crucial in understanding the long-term effects of these tariffs on the automotive industry and consumer prices. While BMW has committed to maintaining current pricing for most imported models through June, the situation remains fluid, and further adjustments may occur depending on how the tariff situation unfolds.

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