BMW has announced plans to freeze electric vehicle (EV) production in the United States starting in May 2025, amid rising uncertainty surrounding proposed auto tariffs from the Trump administration.
This decision, communicated to dealers on April 29, does not specify the reasons for the pause but is widely attributed to the anticipated 25% tariff on imported vehicles, which has caused a ripple effect across the automotive industry.
Despite this temporary halt in production, BMW remains committed to keeping prices stable on most of its imported vehicles through June, excluding the 2 Series and M2 performance coupe.
BMW’s EV Success Contrasts With Industry’s Struggles
The luxury automaker has seen better-than-average success in the EV market, with sales reaching 13,538 units in the first quarter of 2025—a 26% increase compared to the same timeframe last year.
The i4, in particular, stood out as BMW’s top seller, with a remarkable 57% surge in sales, outpacing competitors like Mercedes-Benz, which sold just 3,472 EVs during the same period, reflecting a sharp 58% year-over-year decline.
Sebastian Mackensen, CEO of BMW of North America, emphasized the company’s strong position in the U.S. marketplace, noting that the majority of its vehicles sold domestically are assembled on American soil. This assembly strategy may serve as a buffer against the impending tariffs affecting imports.
BMW is not alone in its cautious stance; several major automakers, including GM and Mercedes-Benz, have rescinded financial forecasts amid this tariff-related uncertainty.
Ford CEO Jim Farley highlighted the industry’s collective challenge, stating that automakers are presently navigating how best to respond to the evolving economic landscape. As the automotive sector awaits further developments, the potential long-term impacts on production strategies and pricing remain to be seen.