Volkswagen is close to a tariff deal with the US, CEO Oliver Blume said, as the carmaker targets the affordable electric vehicle market in Europe. Trump-era tariffs, combined with a weak market, have already cost the group “several billions.” Even with a planned reduction from 27.5% to 15%, Blume called the tariffs a “burden.”
Volkswagen Plans US Investments
The company is promising major US investments and could localise Audi production to reduce costs. Blume said talks with the US government are ongoing, aiming for a quicker resolution.
Porsche Impacted by Tariffs
Porsche is particularly affected as US-bound models are mostly built in Germany. Blume called the situation a “sandwich” of tariffs and weak demand in China, costing billions on the balance sheet.
EV Strategy and Industry Impact
At a Munich trade show, Volkswagen showcased a new small electric car to capture 20% of Europe’s compact EV market. BMW is preparing a Chinese-made iX3 for 2026 with localised software. Trump’s trade war has also hit other automakers, with Lotus and Jaguar Land Rover cutting hundreds of jobs amid uncertainty and cyber disruptions.
