WSJ: VW will impose a surcharge on the price tags of cars imported into the U.S.
Volkswagen will impose an "import levy" on vehicles subject to the 25 per cent duties imposed by US President Donald Trump, the Wall Street Journal reported on Wednesday.
Here's What We Know
Volkswagen's reaction to the duties was first reported by industry publication Automotive News. Journalists learned that the German automaker has temporarily stopped rail shipments of cars to the U.S. from Mexico and will detain vehicles arriving by sea from Europe at the port.
According to the WSJ, Volkswagen has notified its dealers that it will provide more details on pricing strategies for cars subject to the duties by mid-April. Distribution of those cars to dealerships should begin by the end of the month.
"We want to be very transparent about how we will get through this time of uncertainty," a Volkswagen spokesman said.
Germany's largest carmaker said last week that the USA duties and any retaliatory duties would have a negative impact on growth and prosperity in the US and other economic regions.
US duties on imports of cars and car parts
Recall that last Wednesday, 26 March, US President Donald Trump announced that he was imposing duties of 25% on all imports of cars and auto parts. New duties on imported cars came into force on Wednesday, 2 April. Trump promised to impose duties on components from May or later.
The US president said the imposition of duties would lead to "tremendous growth" in the US auto industry, spur investment in it and help create new jobs. However, many analysts say the move could involve halting some US auto production, raising prices and worsening relations with trading partners.
According to the Commerce Department, the US imported $214bn worth of passenger cars in 2024, with Mexico, Japan, South Korea, Canada and Germany being the main suppliers. Meanwhile, Mexico, Japan, South Korea, Canada and Germany had duty-free access to the US auto market under free trade agreements reached during President Donald Trump's first term.
Source: WSJ
