- Volkswagen has frozen vehicle prices until the end of May despite mounting tariff pressure.
- The company faces a 27.5 percent import tariff on Mexico-built models like the Tiguan.
- Future costs may be shared between dealers, suppliers, and end consumers if tariffs persist.
While President Trump’s sweeping tariff policies are widely expected to force car manufacturers to increase prices, some are resisting the urge to immediately jack them up, at least for now. VW is the latest brand to commit to keeping prices steady, announcing that prices will remain flat through May.
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Earlier this month, it was reported that VW was planning to add an import fee to the destination charge of its new vehicles manufactured outside of the United States. At the time, it was reported that it had sent a memo to its dealers asking how to best tell consumers about potential price hikes and tariff costs.
Read: VW Tiguan SEL R-Line Turbo Feels One Plaid Seat Away From Being A GTI
However, Volkswagen Group of America president Kjell Gruner says this was misconstrued as a definitive plan, and it is committed to keeping prices steady for the next six weeks. What will happen after this is uncertain, particularly since the tariff-related regulations could change on a dime if President Trump comes up with another plan or bows to internal pressures from the White House and his billionaire buddies.
“We don’t know what that regulatory or tariff environment will look like even next week,” Gruner told Bloomberg. “We want to give our consumers and dealers that confidence until end of May.”
According to him, if the tariffs remain in place after May, VW may need to spread the cost across suppliers, dealers, and consumers. However, he insisted that price hikes will only be made after closely analyzing its supply chain and the moves of key competitors.
Several VW models are affected by the tariffs, particularly those not built in the United States. For example, the Tiguan is assembled at VW’s plant in Puebla, Mexico. It now faces a combined 27.5 percent tariff, including the 25 percent from Trump’s new auto policy and another 2.5 percent from the existing USMCA duty established during his first term.
Other car manufacturers are reacting like VW and won’t immediately increase prices. For example, Hyundai will keep prices steady until June 2 for itself and the Genesis brand. Additionally, both Ford and Stellantis are offering employee discount pricing for regular shoppers.
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