BMW Canada to resume U.S.-built X-Series imports following a five-month trade-related pause.
Vehicles face combined 31.1% tariffs due to non-compliance with North American content rules.
Price increases planned across full lineup to balance import costs and maintain supply levels.
BMW Canada plans to resume imports of its U.S.-built X3, X5, and other X-Series models after a months-long pause prompted by retaliatory tariffs between Canada and the United States, according to multiple Canadian dealers.
The vehicles, manufactured at BMW’s Spartanburg, South Carolina plant, include the X3, X4, X5, X6, X7 and XM. Shipments were halted in spring 2025 after U.S. President Donald Trump imposed 25 % tariffs on global vehicle imports. Canada responded with a matching 25 % countertariff on U.S.-made vehicles.
The import freeze affected BMW Canada’s core product lineup. In 2024, the X3 and X5 were its top sellers, with 7,128 and 4,489 units sold, respectively, according to the Automotive News Research & Data Center. American-assembled models accounted for 48.4 % of the brand’s Canadian volume that year.
In the second quarter of 2025, BMW Canada reported a 25 % year-over-year drop in sales of the X3 and X5. U.S.-built models made up just 38.3 % of total sales during the quarter, down from 51.1 % in the same period of 2024.
While BMW’s Canadian operations posted a 5.3 % sales increase overall in Q2, helped by models imported from Europe such as the X1, i4, and 3 Series, dealers said the X3 and X5 remain central to retail performance.
2025 BMW X5 25 Jahre | Photo: BMWTo manage the cost impact, BMW Canada intends to implement price increases across its vehicle lineup. Dealers said the company will distribute price hikes evenly, using models not subject to tariffs to help offset losses on U.S.-built imports. For vehicles valued at $100,000, the combined tariff burden could reach approximately $31,100, factoring in the 25 % Canadian countertariff, 25 % U.S. tariff on imported components, and Canada’s 6.1% most-favoured nation duty.
Unlike most vehicles built in North America, the Spartanburg-produced X-Series models are not compliant with the United States-Mexico-Canada Agreement. AutoForecast Solutions vice-president Sam Fiorani said they contain only about one-third North American content which is far below the 75 % USMCA threshold, with key parts such as engines and transmissions sourced from Europe.
BMW Canada has not confirmed its specific import strategy but said it is actively seeking solutions to maintain supply. “It’s a topic BMW Canada continues to address, actively exploring multiple avenues to ensure steady vehicle supply for its customers and retail partners amid a constantly evolving global trade environment,” spokesperson Barb Pitblado said in an email.
Source: Automotive News
