Volkswagen Explores Custom Tariff Agreement with U.S. Government

Volkswagen is currently engaged in discussions with the U.S. government regarding potential tariff adjustments on vehicle imports. Since April, the United States has imposed a 25% tariff on imported vehicles, prompting German automakers to negotiate directly with the administration of President Donald Trump.

Oliver Blume, the CEO of Volkswagen, emphasized the company's commitment to further investment in the U.S. market. He indicated that these discussions are taking place with the U.S. Department of Commerce, although they ultimately involve the President's office. Blume noted that he has personally visited Washington, D.C., and has maintained regular communication with U.S. officials.

Currently, Volkswagen employs approximately 20,000 individuals directly in the United States, with an additional 55,000 jobs supported indirectly through its supply chain. The company manufactures not only cars but also school buses and trucks within the country. Blume affirmed that Volkswagen is poised to enhance its investment footprint in the U.S., suggesting that substantial additional investments could influence the outcome of tariff negotiations.

In parallel, other German automotive giants such as BMW and Mercedes-Benz are also in talks with the U.S. government. They are exploring potential tariff relief mechanisms that could offset imports against U.S. exports. These discussions reflect a broader effort by German automakers to navigate the evolving trade landscape and potentially reach an agreement by June.