Second largest car maker stops US imports after | Tech News

Volkswagen Group has made the shock resolution to put all US-bound automobiles on maintain after introducing a 25% tariff on all imported fashions. President Trump’s self-proclaimed ‘Liberation Day’ noticed a quantity of tariffs launched in a bid to spice up American industry, one of essentially the most dramatic of which was a 25% tax on all imported automobiles.

Reacting to the transfer, a spokesperson for Volkswagen Group criticised the new tariff, warning that it might harm economies worldwide, together with in America. They defined: “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 automobiles in America since 1978 and presently builds a number of common fashions, such because the Atlas SUV and ID.4 electric crossover, in its Tennessee manufacturing facility.

However, different Volkswagen fashions, together with the Jetta saloon and Tiguan SUV, are made in neighbouring Mexico, whereas the Golf is imported from Germany. Other manufacturers within the Volkswagen Group, resembling Audi, additionally import their whole vary of fashions from abroad.

As a end result, the new import tariff will have an effect on a vital quantity of Volkswagen fashions, making them more costly for shoppers to buy.

To reveal the trigger of the elevated costs for shoppers, Volkswagen acknowledged that each one fashions bought in America will function an ‘import payment’, which will likely be proven alongside different typical fees, resembling street tax and elective extras.

According to a memo despatched to car sellers, Volkswagen Group can even freeze shipments to America till additional discover, with the company mentioned to have slightly below three months’ price of remaining stock.

Executives on the German company are reportedly aiming to influence the Trump Administration to revise the phrases of the tariff.

Nevertheless, Volkswagen Group aren’t the one producer to freeze imports of their fashions to America, with Jaguar Land Rover (JLR) saying a related transfer earlier in April 2025.

In a assertion, the UK carmaker famous that the pause on shipments is just a short-term measure however crucial to barter the new tariff.

They continued: “As we work to address the new trading terms with our business partners, we are taking some short-term actions including a shipment pause in April, as we develop our mid- to longer-term plans.”