According to Zhitong Finance APP, Volkswagen (VWAGY.US) plans to increase the import fees in the pricing of cars shipped to the United States, indicating that President Donald Trump's 25% auto tariff will have a direct impact on this largest European car manufacturer.

According to reports, Volkswagen sent a memo to U.S. dealers informing them of related costs and taking measures to temporarily halt rail shipments of vehicles from Mexico and keep vehicles shipped from Europe at ports. A Volkswagen spokesperson confirmed the existence of the memo but declined to comment on its content.

German carmakers are among the industries most affected by Trump's increase in car import tariffs. Strong demand for more profitable SUV models and a slower shift towards electric vehicles among American consumers have made the U.S. market an important source of profit for companies like Mercedes-Benz Group and Porsche.

Hildegard Müller, head of the German automotive lobbying group VDA, stated that Trump's tariffs represent a "fundamental turning point in trade policy." She argued that this move would only result in losses for all countries involved, including the U.S., with American consumers facing "higher inflation and reduced product choices."

Trump's auto tariffs took effect on Thursday, unsettling the automotive industry.

German automotive stocks plummeted on Thursday, with Volkswagen and Mercedes-Benz experiencing intraday declines of over 3%. BMW's stock price rose by 1.6% at one point, reversing an earlier downward trend.

Volkswagen has a factory in Tennessee that produces the electric ID.4 and the large Atlas SUV. Models including the ID. Buzz van and Golf hatchback are imported from Europe, while the Tiguan, Taos SUV, and Jetta compact sedan are imported from Mexico.

This German manufacturer has long sought to achieve growth in the lucrative North American market. Last year, the company's sales in North America accounted for about one-fifth of its total sales. In 2024, Volkswagen's deliveries in the region increased by 7%.