Automakers Volkswagen and Stellantis have confirmed that their vehicles made in North America will be exempt from U.S. President Donald Trump's newly rolled out 25% tariffs, while BMW says it will face levies, as European car manufacturers grapple with new trade rules.

Volkswagen AG’s US investments should count for something if President Donald Trump decides to impose additional tariffs, the company’s finance chief said.

BMW appears to not comply with the requirement that 75% of a vehicle's parts must originate from North America to avoid the tariff

Trade war threats promise to raise new car prices by as much as $12,000 before we experience the massive production shortage it will cause.