Volkswagen says it is close to securing a trade deal with the US after Donald Trump’s tariffs on European cars cost the group “several billions”.
CEO Oliver Blume confirmed the company is in talks with Washington to cut import levies, which currently stand at 27.5% and are due to fall to 15%. Even at the reduced rate, Blume said tariffs remain “a burden” for Europe’s largest carmaker, which owns Audi, Seat and Porsche.
Volkswagen is offering “massive” US investment in return for further tariff relief. Blume added that the group may localise Audi production and expand exports from America if a deal is struck.
Porsche has been hit hardest by the tariffs, with its German-built models squeezed by costs and weak Chinese demand. “It’s several billion euros on our balance sheet this year,” Blume told reporters.
At the Munich auto show, Volkswagen also unveiled a new small electric car, part of its plan to capture 20% of Europe’s compact EV market.
The wider car industry continues to suffer from Trump’s trade war. Lotus has announced 550 job cuts, while Jaguar Land Rover is axing up to 500 management roles following a sales slump. Meanwhile, BMW confirmed it will launch a China-built version of its iX3 SUV in 2026 with software tailored to local buyers.
