Volkswagen Criticizes Potential U.S. Tariffs on Mexican Imports

The German automaker warns of economic harm to consumers and the automotive industry if President Trump's proposed 25% tariffs take effect February 1.

• Volkswagen has expressed concerns about the economic consequences of President Trump's proposed 25% tariffs on imports from Mexico, where the company operates a major production facility.
• The Puebla factory in Mexico, Volkswagen's largest in the country, manufactured nearly 350,000 vehicles in 2023, primarily for export to the U.S.
• Analysts warn that U.S. tariffs on Mexican-made cars could render 65% of Volkswagen's U.S. offerings uncompetitive and potentially lead to the brand's exit from the American market.
• Volkswagen emphasized its commitment to free trade and highlighted its $10 billion investment in U.S. operations, including its Chattanooga plant and a joint venture with Rivian.
• The proposed tariffs risk igniting a trade conflict under the USMCA agreement, with Canada and Mexico signaling potential retaliatory measures against U.S. goods.

4 Articles

Benzinga The Times The Globe and Mail