Volkswagen is close to securing a US tariff deal, CEO Oliver Blume said, as the carmaker aims to expand its affordable electric vehicle market in Europe. Trump’s trade tariffs, combined with a turbulent market, have already cost the group “several billions.” Even with a proposed reduction from 27.5% to 15%, Blume called the tariffs a burden. Volkswagen plans major US investments and may localise Audi production to ease the impact.
Porsche Feels the Pinch
Porsche is particularly affected, as most US-bound models are manufactured in Germany, while a weak Chinese market adds pressure. Blume unveiled a new small electric car concept targeting a fifth of Europe’s compact EV market, emphasizing affordability and profitability.
Industry-Wide Impact
BMW is preparing a Chinese iX3 SUV for 2026 with localised software. Trump’s tariffs have caused broader disruption: Lotus plans 550 UK job cuts, Jaguar Land Rover up to 500, and UK manufacturers are also managing cyber-attack fallout.
