Volkswagen rapidly raises prices! Multiple car companies consider following suit

On April 2nd, local time, U.S. President Trump announced a 25% tariff on imported automobiles, which officially took effect on April 3rd. In response, Volkswagen quickly planned to increase import fees in the pricing of cars shipped to the U.S., indicating that this policy has had a direct impact on the largest car manufacturer in Europe.

A memorandum confirmed by a Volkswagen spokesperson shows that the company informed U.S. dealers about the relevant fee adjustments and temporarily suspended the transportation of vehicles by rail from Mexico, while vehicles shipped from Europe will be held at ports.

The specific affected models include the ID. Buzz van and Golf hatchback imported from Europe, as well as the Tiguan, TAOS SUV, and Jetta compact sedan imported from Mexico. However, the electric ID.4 and large Atlas SUV produced at Volkswagen's factory in Tennessee are theoretically unaffected by this tariff.

The U.S. market is crucial for Volkswagen. According to data from the Federal Statistical Office of Germany, in 2024, the U.S. region accounted for 13.1% of Germany's automobile export share, ranking first. Last year, Volkswagen's delivery volume in North America grew by 7%, and sales in that region accounted for about one-fifth of its total sales.

In the first quarter of 2025, Volkswagen sold approximately 87,900 vehicles in the U.S., a year-on-year increase of 7.1%. However, in March, sales fell by 7.6% year-on-year. The tariff and price increase measures will undoubtedly bring uncertainty to its subsequent market performance.

Many car manufacturers will be affected by Trump's tariff policy. Reports indicate that Mercedes-Benz is considering withdrawing its entry-level cars from the U.S. market, as tariffs may make selling low-priced cars unprofitable; Aston Martin and Ferrari plan to raise car prices in the U.S.; other German automakers, such as Porsche and Audi, are also considering increasing prices in the U.S. to offset the impact of tariffs.

The Trump administration claims that the imposition of automobile tariffs is aimed at revitalizing the U.S. automotive industry, but this move has faced opposition from various quarters. The tariff policy not only impacts import car companies like Volkswagen but also brings many negative effects to the U.S. domestic automotive industry and consumers.

Bernd Lange, chairman of the European Parliament's International Trade Committee, stated that this decision will cause "a significant increase in the price of every new car in the U.S.," and the EU will not allow the U.S. to exert pressure.

Two major business groups in Michigan—the Detroit Regional Chamber and the Automotive and Mobility Association—jointly wrote to the White House, strongly opposing the new tariff policy, pointing out that the state's automotive industry has numerous related jobs and contributes significantly to the economy. The cost surge caused by tariffs will severely disrupt the supply chain, forcing working-class and middle-class families to bear higher vehicle costs.

Additionally, the Peterson Institute for International Economics predicts that the tariffs could lead to an average increase of about $10,000 in the price of new cars in the U.S., with car sales shifting from a 1% annual growth to a 3% decline. Furthermore, consumers may be forced to delay car purchases or turn to the used car market, thereby driving up used car prices Risk Warning and Disclaimer

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