Volkswagen hopes that negotiations would prevent a trade war following Trump’s tariffs
Following U.S. President Donald Trump’s order to impose tariffs on imports from China, Canada, and Mexico, Europe’s largest automaker, Volkswagen (VOWG_p.DE), said on Sunday that it is relying on negotiations to prevent a trade war.
The Volkswagen Group’s Puebla plant is the biggest in Mexico and will produce around 350,000 vehicles in 2023, including the Jetta, Tiguan, and Taos models, all of which will be exported to the US.
“We are assessing any potential effects on the automotive industry and our company as a result of the announced tariffs,” the statement from Volkswagen stated.
“We are counting on constructive talks between the trading partners to ensure planning security and economic stability and to avoid a trade conflict.”
Trump announced that a 10% tax on Chinese goods and a 25% charge on imports from Canada and Mexico would take effect on Tuesday.
The German auto lobby VDA stated on Saturday that the tariffs might affect jobs in Germany and Europe and represent a major blow to rule-based international commerce.
Of the German automakers, Volkswagen is most vulnerable to tariffs. According to analysts at investment bank Stifel, if tariffs were imposed on Mexican imports, 65% of the vehicles sold by Volkswagen in the US would no longer be competitive.
