Volkswagen Group, the world’s second largest automaker, made a shocking decision to put all U.S.-bound cars on hold after all imported models introduced a 25% tariff.
The global automaker confirmed it was a high-risk holding model triggered by President Donald Trump’s 25% tariff on imported cars.
A spokesman for Volkswagen Group responded to this, criticizing the new tariffs, warning that it could harm global economies, including the United States.
“We share the assessments of most experts that U.S. tariffs and any anti-election will have negative impacts on growth and prosperity in the U.S. and other economic sectors. The automotive industry as a whole, global supply chain and companies, and customers, must bear the negative consequences.”
Volkswagen has been producing vehicles in the United States since 1978 and currently has several popular models at its Tennessee factory, such as the Atlas SUV and the ID.4 electric crossover.
However, other Volkswagen models, including the Jetta sedan and Tiguan SUV, are made in neighboring Mexico, while the golf is imported from Germany. Other brands of Volkswagen Group, such as Audi, have also imported the entire model from overseas.
As a result, new import tariffs will affect a large number of Volkswagen models, making it more expensive for consumers to buy.
To prove the reasons for the rise in consumer prices, Volkswagen said that all models sold in the U.S. will be characterized by an “import fee,” which will be shown along with other typical fees, such as road taxes and optional additional fees.
Volkswagen Group will also freeze goods to the U.S. until further notice, and the company is said to be worth less than three months in the remaining shares of the company, according to a memo sent to auto dealers.
The German company’s executives are reportedly aiming to convince the Trump administration to amend tariff terms.
