Volkswagen Shelters Against Trump’s Tariff Threat
Why the German Auto Giant is at a Loss
Volkswagen says a proposed 25% duty on Mexican imports could hit the U.S. and the global car landscape hard. The German maker, with a sprawling plant in Mexico City, is already feeling the pinch from soaring costs and a flood of cheaper competition from China.
“We’re concerned about the harmful economic impact that these tariffs will have on American consumers and the entire automotive industry,” a Volkswagen spokesperson wrote to Reuters. “We value collaboration and open dialogue. The Volkswagen Group looks forward to continuing its longstanding partnership with the U.S. administration,” the email added.
Key Takeaways
- Potential 25% duty on Mexican goods starting February 1
- Volkswagen’s factory in Mexico is stacked at risk
- Company calls for constructive U.S. partnership
While Trump’s move threatens to stir up a traffic jam in the auto supply chain, Volkswagen hopes negotiations will steer clear of bumper-to-bumper chaos.
