Published by Global Banking & Finance Review®
Posted on February 2, 2025
2 min readLast updated: January 26, 2026
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Volkswagen seeks dialogue to prevent a trade conflict after Trump imposes tariffs on Mexican, Canadian, and Chinese imports.
BERLIN (Reuters) - Volkswagen is counting on talks to avoid trade conflict, Europe's biggest carmaker said on Sunday, after U.S. President Donald Trump ordered tariffs on goods from Mexico, Canada and China.
The company's Puebla factory is Mexico's largest and one of the biggest in the Volkswagen Group, making nearly 350,000 cars in 2023, including the Jetta, Tiguan and Taos models, all for export to the United States.
"We are assessing any potential effects on the automotive industry and our company as a result of the announced tariffs," Volkswagen's statement said.
"We are counting on constructive talks between the trading partners to ensure planning security and economic stability and to avoid a trade conflict."
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 Tuesday.
German car lobby VDA said on Saturday that the tariffs are a significant setback for rule-based global trade and could have repercussions on jobs in Germany and Europe.
Volkswagen is the most exposed to tariffs among German carmakers. Analysts at investment bank Stifel have said that 65% of the cars that Volkswagen sells in the United States would no longer be competitive if duties were added to Mexican imports.
(Reporting by Andrey Sychev and Victoria Waldersee; Editing by Elaine Hardcastle and David Goodman)
Volkswagen is counting on talks to avoid a trade conflict and is assessing the potential effects of the tariffs on the automotive industry and their company.
Trump announced a 25% levy on Canadian and Mexican imports, along with an additional 10% tax on Chinese goods, set to come into force on Tuesday.
Volkswagen is the most exposed among German carmakers, with analysts suggesting that 65% of the cars they sell in the U.S. could face increased costs due to the tariffs.
The German car lobby VDA stated that the tariffs represent a significant setback for rule-based global trade and could have repercussions on jobs in Germany and Europe.
Volkswagen is relying on constructive talks between trading partners to ensure planning security and economic stability, aiming to avoid a trade conflict.
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