Volkswagen is close to securing a US tariff deal, CEO Oliver Blume said, as the company targets the European electric vehicle market. Trump’s trade tariffs, combined with a weak market, have already cost Volkswagen “several billions.” Even with a proposed reduction from 27.5% to 15%, Blume called the tariffs a “burden.”
The automaker plans major US investments and may localize Audi production. Porsche is especially affected due to its US-made cars and a struggling Chinese market. Blume also unveiled a small, affordable electric vehicle to capture a fifth of Europe’s compact EV market.
BMW is preparing a Chinese-made iX3 for 2026 with localized software. Trump’s tariffs have disrupted the global auto industry, with UK firms Lotus and Jaguar Land Rover announcing job cuts linked to trade uncertainty.
