Volkswagen to hike prices after Donald Trump's 25% auto tariffs come into effect

Volkswagen AG intends to raise the sticker pricing of its cars that are delivered into the US to reflect the new import taxes. Volkswagen's vehicles are now subject to 25% tariffs on auto imports into the US, which were announced by US President Donald Trump.

A notice alerting US dealers to the fees was sent by the German automaker. According to the article, it is also detaining automobiles from Europe at ports and has temporarily stopped rail shipments of automobiles from Mexico. Volkswagen manufactures the electric ID.4 and larger Atlas SUVs at a plant in Tennessee.

While the Tiguan, Taos SUVs, and Jetta are imported from Mexico, other models, including the ID Buzz van and Golf, are sourced from Europe. Among the companies most affected by Trump's auto tariffs are German automakers. Hildegard Müller, the president of Germany's auto lobby VDA, was quoted in the newspaper as stating that Trump's tariffs represent a "fundamental turning point in trade policy."