Wednesday, April 9, 2025 - World's second-largest automaker, Volkswagen Group has made the shock decision to put all US-bound cars on hold after introducing a 25% tariff on all imported models.
The global automaker confirmed it's in a high-stakes holding
pattern triggered by President Donald Trump's 25 percent tariff on
imported vehicles.
Reacting to the move, a spokesperson for Volkswagen
Group criticised the new tariff, warning that it could
damage economies worldwide, including in America.
They explained: "We share the assessment of most
experts that US tariffs and any counter-tariffs will have negative consequences
for growth and prosperity in the US and other economic areas. The entire
automotive industry, global supply chains and companies as well as customers
will have to bear the negative consequences."
Volkswagen has been producing vehicles in America since 1978
and currently builds several popular models, such as the Atlas SUV and ID.4
electric crossover, in its Tennessee factory.
However, other Volkswagen models, including the Jetta saloon
and Tiguan SUV, are made in neighbouring Mexico, while the Golf is imported
from Germany. Other brands in the Volkswagen Group, such as Audi, also import
their entire range of models from overseas.
As a result, the new import tariff will affect a significant
number of Volkswagen models, making them more expensive for consumers to buy.
To demonstrate the cause of the increased prices for
consumers, Volkswagen stated that all models sold in America will feature an
'import fee', which will be shown alongside other typical charges, such as road
tax and optional extras.
According to a memo sent to car dealers, Volkswagen Group
will also freeze shipments to America until further notice, with the company
said to have just under three months’ worth of remaining stock.
Executives at the German company are reportedly aiming to
persuade the Trump Administration to revise the terms of the tariff.
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