Volkswagen has taken the dramatic step of halting all vehicle imports into the US, as the world’s second-largest carmaker grapples with the fallout from President Donald Trump’s sweeping 25% tariff on foreign-made cars.
Thousands of vehicles — including many from its luxury brand Audi — are currently being held at American ports, caught in limbo after arriving on the same day Trump’s tariff announcement was made. The German giant has since paused all US-bound shipments and is weighing up its next steps, as auto industry leaders scramble to assess the impact of the escalating trade tensions.
Executives at VW are reportedly hoping for either a policy reversal or the opportunity to negotiate more favourable terms. In the meantime, the company said it will begin including a new “import fee” on affected models, which will be listed alongside existing charges such as VAT, delivery costs, and extras like heated seats or panoramic roofs.
The announcement underscores the growing disruption to global automotive supply chains — with Audi particularly vulnerable. Its top-selling Q5 SUV is assembled in Mexico, while most of the brand’s other models are shipped from Europe, placing nearly its entire line-up squarely in the tariff’s crosshairs.
Speaking at the company’s headquarters in Wolfsburg last month, Volkswagen CEO Oliver Blume addressed the mounting uncertainty. In a statement to DailyMail.com, the firm said: “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.”
Although no immediate showroom shortages are expected — Volkswagen has 37,000 vehicles in US inventory, which should last dealers around two months — the company warned of potential disruption ahead if the standoff continues.
“The entire automotive industry, global supply chains and customers will bear the negative consequences,” a spokesperson added, noting that VW has invested over $14 billion in US production facilities, including its Chattanooga, Tennessee plant, which builds the Atlas, Atlas Cross, and electric ID.4 models.
Despite this local footprint, VW remains heavily reliant on imported vehicles. That exposure places it among the most at-risk carmakers as the Trump administration intensifies its protectionist trade stance.
Insiders say communication with dealers is ongoing. “We want to be transparent about navigating this period of uncertainty,” said a VW source. “Our messaging can change daily based on circumstances, but our focus remains on supporting our dealer network and customers.”
The move follows similar steps by rival manufacturers. Jaguar Land Rover has also paused US-bound shipments, while Stellantis — owner of Jeep, Dodge, and Chrysler — has furloughed 900 staff and paused production at several plants. Ford is attempting to offset losses by offering discounts, and GM is accelerating US production of its high-margin trucks.
Toyota and Mercedes-Benz have so far resisted price changes, but analysts warn that industry-wide adjustments are inevitable if tariffs remain in place.
President Trump, defending his stance, has insisted that the tariffs are intended to pressure foreign carmakers to manufacture more vehicles in the US. “They charge us 39 percent, we’re going to charge 20 percent,” he said of European tariffs. “So we’re charging them essentially half.”
However, trade experts have questioned those figures. According to the World Trade Organisation, the average EU tariff on US products stands at just 4.8%. In 2023, the bloc reportedly collected $3 billion in tariffs on US goods, compared to $7 billion collected by America.
As the situation evolves, manufacturers, dealers and consumers alike are bracing for a turbulent second quarter, with the global automotive industry once again caught in the crossfire of geopolitical policy shifts.
