Trump Says He Will Hit BMW With 35% Tax If They Build Mexico Plant

BMW is the latest automaker under fire from Donald Trump, as the incoming President-Elect threatened them with a potential 35% tax on vehicles imported into the United States.

Trump made the statement in a wide-ranging interview with the Sunday Times.

Trump’s reason for the tax is BMW’s plan to build the 3 Series at their San Luis Potosi plant starting in 2019.

The Mexico plant is being added to current BMW 3 Series facilities in China and Germany.

Trump says BMW should put their new factory in the US instead of Mexico, or they will get hit with the border tax.

Trump is critical of the gap between how many German cars Americans purchase, and how many American cars Germans purchase.

The tax could be a way to close that gap.

BMW has responded by saying they are “very much at home in the US,” and mentioned that they employ up to 70,000 people in the country – when additional production and support jobs are considered.

It will be interesting to watch what happens to BMW’s stock price, as automakers previously mentioned by Trump have seen declines in their share prices – though often only in the short term.

Spencer Fernando

Photo – Twitter