BMW will cover the new customs duties on vehicles imported from Mexico.

According to The Wall Street Journal, German automaker BMW has informed its dealers in the U.S. that it will absorb the additional costs from new customs duties on vehicles imported from Mexico over the next few weeks. The 25% tariffs, imposed by President Trump in early March, apply to vehicles that do not meet the requirements of the North American Free Trade Agreement (NAFTA), which mandates that a majority of a model's parts must be sourced from within the region.

Several other brands, alongside BMW, are also affected by these new tariffs. Models produced in Mexico that are currently subject to these duties include the 3 Series sedan and the M2 performance version, as well as the 2 Series coupe. These two models account for approximately 12% of BMW's U.S. sales. The company communicated this decision to its dealers on Wednesday.