Volkswagen’s chief executive Oliver Blume has said that US tariffs were hurting his company, calling the deal between the European Union and US “asymmetric”.
Blume told Reuters yesterday VW did not appreciate the deal Brussels and Washington struck, imposing 15 per cent tariffs on EU car imports while the EU imposed none in return.
“Therefore, we are counting on our plan on investments in the US,” which would boost local employment and VW’s supply chain, Blume said at the IAA Munich car show, adding talks with the US Government were “very positive”.
Volkswagen is eying major investments in the US, including new factories, to increase production overseas and bypass the tariffs.
“We need to take decisions right now for localising our business there,” Blume said.
He said the tariffs have cost the Volkswagen group “several billions of euros so far this year”.
Hardest hit were the Audi and Porsche brands because they do not have production plants in the US.
Porsche was also wedged in a “sandwich” between tariffs and a weak Chinese market, said Blume, who is also CEO of the luxury sports car maker.
Foreign carmakers have been hit hardest by import tariffs of 27.5 per cent, which will be lowered to 15 per cent when the trade deal between the US and the EU kicks in.
Blume told Bloomberg he “welcomed” the agreement because it gives the automaker “planning security” but the 15 per cent tariff “would be a burden” for the company.
“We don’t appreciate the asymmetric deal in-between the US and EU because it’s distorting the competition in Europe,” Blume said.
Germany’s auto giant Volkswagen has reported a 36.3 per cent drop in its net profits, citing US tariffs and ongoing struggles with its electric vehicle strategy. https://t.co/WxFJihzdzq
— Brussels Signal (@brusselssignal) July 25, 2025
