Volkswagen Group of America will hold prices steady on new VW-brand vehicles through the end of May as uncertainty surrounding new U.S. import tariffs raises questions for car buyers and dealers. The company confirmed the decision during an April 16 roundtable at the New York Auto Show, aiming to provide short-term clarity while monitoring the evolving trade landscape.
The Trump administration’s 25% tariff on all U.S. car and light-truck imports took effect April 3 and impacts nearly half the models sold in the U.S. Analysts say the move will lead to higher vehicle prices and reduced availability in the coming months.
VW CEO Kjell Gruner acknowledged that U.S. customers are already asking questions and adjusting buying decisions based on the new policy.
Volkswagen had previously warned retailers of a possible “added import fee” on affected vehicles, but Gruner clarified that no such surcharge has been implemented. He remained noncommittal on whether it would be applied after May, citing the need to assess future tariff developments.
While VW continues shipping vehicles as planned, Gruner emphasized that the brand cannot fully absorb the cost of the tariffs alone and is carefully evaluating what portion of the added cost consumers, dealers, and suppliers can reasonably bear.
The price freeze applies only to the VW brand. Pricing decisions for Audi, Bentley, and Lamborghini will be made separately. Bentley, however, will honor pre-tariff pricing on customer orders placed through the end of April, regardless of delivery date.
Volkswagen imports several key models from Mexico—including the Jetta, Taos, and Tiguan—all compliant with the United States-Mexico-Canada Agreement. The Tiguan, VW’s bestselling U.S. model, is set for a 2025 redesign debuting in May. Additional models like the ID Buzz, Golf GTI, and Golf R are imported from Germany. Meanwhile, the ID4, Atlas, and Atlas Cross Sport are produced domestically in Chattanooga.
VW’s U.S. sales rose 7.1% in the first quarter, bolstered by a consumer rush to purchase vehicles ahead of the tariff implementation. Discussions about future U.S. manufacturing investments are underway, though Gruner declined to share specific plans.