Volkswagen Evaluates Potential Impact of Trump Tariffs on U.S. Sales

Volkswagen is evaluating the impact of newly imposed U.S. tariffs on foreign vehicles, following reports that the company may introduce an "import fee" to offset the increased costs. The move comes after President Donald Trump announced a 25 percent tariff on car imports into the United States.

A Volkswagen spokesperson confirmed the carmaker is assessing the situation and said that it will communicate its strategy with dealers once the financial impact is clear. According to Automotive News, a company memo to U.S. dealers indicated plans to add an import charge to vehicles shipped into the country.

The report also stated that Volkswagen would temporarily halt rail shipments of cars from Mexico to the U.S., a key supply route for the manufacturer. Volkswagen, which owns brands including Audi, Porsche, Seat, and Skoda, sold just over one million vehicles in North America last year, accounting for 12 percent of its global volume. Of those, around 65 percent of Volkswagen-branded vehicles sold in the U.S. are imported, with Audi and Porsche imports reaching 100 percent.

The tariffs present a new challenge for German carmakers already facing slow progress in electric vehicle adoption and strong competition from Chinese manufacturers.

In December, Volkswagen announced plans to cut 35,000 jobs by 2035 as part of its restructuring efforts. Responding to the tariff move, the head of Germany’s automotive industry group VDA urged the European Union to respond firmly and push for negotiations.