Volkswagen (VW) is close to a trade deal with the United States to reduce the problems caused by tariffs from Donald Trump. These tariffs have already cost the company billions of dollars. The current tax on European cars and parts is 27.5%, but they have agreed to lower it to 15%. VW’s CEO, Oliver Blume, hopes to get an even better deal that would make the tax even lower.
To get this better deal, VW has promised to make “massive” investments in the US. Mr. Blume suggested that they might start building Audi cars in the US and also send more cars made in the US to other countries. VW’s fancy car brand, Porsche, has been hurt the most by these tariffs.
Unlike other German car companies, almost all Porsche cars sold in the US are made in Germany, which makes them more affected by the taxes on imports. Trump’s trade policies have caused big problems for the car industry in general. Other companies like Lotus and Jaguar Land Rover have also had to cut jobs and saw their sales drop because of the uncertainty and costs caused by the tariffs.
Source: Almeida, L. (2025b, septiembre 8). Volkswagen ‘nearing US trade deal’ as it says Trump tariffs have cost it billions. The Guardian. https://www.theguardian.com/business/2025/sep/08/volkswagen-us-trade-deal-trump-tariffs-porsche