Volkswagen Halts US Car Imports After Trump’s 25% Tariff Hike

Volkswagen Group, the world’s second-largest automaker, has suspended all vehicle imports to the United States following the Trump administration’s introduction of a 25 percent tariff on all imported cars.

In a statement confirming the decision, the German automotive giant described the move as a “high-stakes holding pattern” in response to the newly imposed duties. A spokesperson for the company criticized the tariff, warning it could disrupt global economic stability, including that of the United States.

“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 company said. “The entire automotive industry, global supply chains and companies as well as customers will have to bear the negative consequences.”

Volkswagen has maintained a manufacturing presence in the US since 1978, currently producing models like the Atlas SUV and the ID.4 electric crossover at its Tennessee facility. However, many of its other popular models, including the Jetta and Tiguan, are built in Mexico, while others like the Golf and the entire Audi lineup are imported from Germany and other regions.

The new tariffs are expected to significantly raise prices on a wide range of Volkswagen models sold in the US. To ensure transparency with buyers, the company announced that an “import fee” will now be included on vehicle price labels, listed alongside road taxes and optional features.

A company memo to dealerships revealed that Volkswagen will freeze all US-bound shipments effective immediately, although current inventories are expected to last for nearly three months.

Meanwhile, company executives are reportedly in talks with Washington in an attempt to negotiate a revision of the tariff terms.