Volkswagen maps out first steps in tariff response

Cars built outside the U.S. won’t be processed, invoiced, or delivered—at least not yet. (1 min. read)

Author

Anna del Villar
April 03, 2025

Volkswagen $VLKAY ( ▼ 0.99% ) has outlined the automaker's first wave of adjustments to new auto tariffs in a memo sent to dealers yesterday.

Driving the news: VW is pausing rail shipments from Mexico and plans to hold imported vehicles at U.S. ports until the automaker figures out what to do next.

Why it matters: Tariffs will impact every major automaker—and VW is among the most exposed, with core models like the Jetta, Taos, and Tiguan built in Mexico.

"We are closely monitoring storage capacity at ports and Puebla yards to ensure minimal disruption. Our current assessment shows adequate space to manage this temporary adjustment, and we're working with our logistics partners to optimize vehicle movement once the tariff situation stabilizes," the memo read.

What’s next:

  • Pricing guidance by carline/trim will be shared by mid-April.

  • VW will add a new line item—an “Import Fee”—to the destination charge for vehicles built outside the U.S. Full fee details are expected by mid-April.

  • VW is pulling back on “Deal Days” promotions and reallocating its ad spend toward "consideration" marketing.

  • Cycle A allocation (Apr 7-8) includes only unaffected vehicles with normal pricing. Cycle B (Apr 22–23) may include tariffed vehicles—with opt-out flexibility.

Bottom line: VW is moving quickly—but still doesn’t have all the answers. Like most automakers, they’re being forced to make near-term decisions in a fog of policy uncertainty. For now, they’re trying to keep cars moving, dealers selling, and options open.

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