Volkswagen Alerts US Dealers About Upcoming Import Fee Amid Tariff Impact: Report

Volkswagen informed its American dealership network of an impending import fee on vehicles shipped to the US, marking one of the clearest industry responses yet to the 25 per cent tariffs recently implemented by the Trump administration on imported cars and auto parts.

While tariffs on vehicles became effective this Thursday, those on components will come into force on May 3. According to a memo issued to dealers this week—reviewed by The New York Times—Volkswagen said that the precise amount of the added fee would be finalised by mid-April.

The automaker also indicated it would reduce its sales incentives and has temporarily suspended rail deliveries of vehicles from its Mexican facilities to the US, although maritime shipping operations are still ongoing.

Port Delays and Model Pricing in Flux

Vehicles affected by the new tariffs will be held at US ports “for the near term,” the automaker noted. Among the models potentially impacted is the Volkswagen Atlas SUV, which is manufactured in Chattanooga, Tennessee, but includes key imported parts. The memo cautioned that the full pricing implications may not become clear until May.

While Volkswagen assembles the ID.4 electric SUV and the Atlas domestically, the vast majority of its US inventory—including that of its Audi and Porsche divisions—is imported.

In a company statement, Volkswagen explained the rationale behind notifying dealers early, the report noted.

“We have our dealers' and customers' best interest at heart, and once we have quantified the impact on the business we will share our strategy with our dealers,” the automaker said. The company added that it was aiming to be “very transparent about navigating through this time of uncertainty.”

Also Read : Faced With Steep Tariffs, Vietnam, Cambodia, Indonesia Try To Woo Donald Trump To Ease Trade Tensions

Other Carmakers React with Production Pauses

Volkswagen isn’t alone in adjusting operations. Stellantis, the parent company of brands like Jeep, Dodge, Ram, and Chrysler, announced temporary shutdowns at two North American plants due to the tariffs. A facility in Windsor, Ontario, which produces the Chrysler Pacifica and Dodge Charger, will suspend operations for two weeks. Meanwhile, the Toluca, Mexico, plant responsible for the Jeep Compass and Wagoneer S will halt production starting Monday and remain closed through the end of the month.

As a result, Stellantis said about 900 workers in Indiana and Michigan will face layoffs tied to the disruptions at its Canadian and Mexican manufacturing hubs.

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