VW Won't Increase Prices for Now, But Cautions That Someone Will Bear That 25% Tariff | Carscoops

      Volkswagen is not the sole automaker to implement this approach; other companies, including Hyundai, Stellantis, and Ford, are also maintaining stable prices, at least for the time being.

      Volkswagen has decided to hold vehicle prices steady until the end of May, despite increasing tariff pressures.

      The automaker contends with a 27.5 percent import tariff on models such as the Tiguan that are built in Mexico.

      If tariffs continue, future costs might be distributed among dealers, suppliers, and final consumers.

      Although President Trump’s broad tariff policies are anticipated to compel car manufacturers to raise prices, some are choosing to refrain from immediately increasing them, at least for the moment. VW is the latest brand to announce it will keep prices unchanged through May.

      Earlier this month, it was reported that VW intended to impose an import fee on the destination charges for its new vehicles produced outside the U.S. At that time, it was disclosed that a memo had been sent to dealers advising them on how to effectively communicate potential price increases and tariff implications to consumers.

      However, Kjell Gruner, president of Volkswagen Group of America, clarified that this was misinterpreted as a definite plan, reaffirming the commitment to maintain stable prices for the upcoming six weeks. What will transpire afterwards remains uncertain, particularly since the tariff-related policies could shift rapidly if President Trump devises a new strategy or succumbs to internal pressures from the White House and his affluent associates.

      “We cannot predict what the regulatory or tariff situation will look like even next week,” Gruner told Bloomberg. “We aim to give our consumers and dealers that assurance until the end of May.”

      He noted that if the tariffs persist beyond May, VW may have to share the associated costs among suppliers, dealers, and consumers. However, he emphasized that any price increases would only follow a thorough evaluation of its supply chain and the actions of key competitors.

      Multiple VW models are impacted by these tariffs, especially those not manufactured in the U.S., such as the Tiguan, which is produced at VW’s facility in Puebla, Mexico. It now encounters a total tariff of 27.5 percent, which includes the 25 percent from Trump’s new auto policy and an additional 2.5 percent from the existing USMCA duty set during his initial term.

      Other automakers are similarly responding like VW and are not rushing to raise prices. For instance, Hyundai has declared it will keep prices stable until June 2 for its brand and the Genesis line. Furthermore, Ford and Stellantis are providing employee discount pricing for regular customers.