Volkswagen to raise prices in US after new auto tariffs

Volkswagen plans to add import duties to the sticker prices of its vehicles shipped to the United States, indicating that Donald Trump’s 25% tariffs on cars will immediately impact Europe’s largest automaker.

Volkswagen sent a notice to US car dealers informing them of the duties, as well as measures to temporarily halt rail shipments from Mexico and impound vehicles arriving from Europe at ports.

German automakers are among the hardest hit by Trump’s higher tariffs on auto imports. Strong demand for more profitable SUVs and a slowing shift in US consumers toward electric vehicles make it a lucrative market for companies such as Mercedes-Benz and Porsche AG.

Shares in German automakers fell on Thursday, with Volkswagen and Mercedes shares falling more than 3% in early trading. BMW shares were down 0.7% as of 10:49 a.m. in Frankfurt.