Automotive News Europe — 2025-02-02
Automotive Industry
Volkswagen Group is counting on talks to avoid trade conflict after US President Donald Trump ordered tariffs on goods from Mexico, Canada and China.
VW’s Puebla factory is Mexico’s largest and one of the biggest in the VW Group, building nearly 350,000 cars in 2023, including the Jetta, Tiguan and Taos models, all for export to the US.
“We are assessing any potential effects on the automotive industry and our company as a result of the announced tariffs,” VW said in a statement on 2 February 2025.
“We are counting on constructive talks between the trading partners to ensure planning security and economic stability and to avoid a trade conflict,” the statement said.
Trump said that 25% levy on Canadian and Mexican imports, as well as an additional 10% tax on Chinese goods, would come into force on 4 February 2025.
VW Group’s VW and Audi brands are the most exposed to Mexico tariffs among German carmakers.
Analysts at investment bank Stifel have said that 65% of the cars that VW sells in the US would no longer be competitive if duties were added to Mexican imports.
Audi produces the Q5 SUV, one of its topsellers, in San Jose Chiapa, Mexico, and exports it to the US.
German car lobby VDA said the tariffs are a significant setback for rule-based global trade and could have repercussions on jobs in Germany and Europe.