Volkswagen May Cancel US Factory Plans Due to Tariffs
Volkswagen is reconsidering its plans for a new Audi factory in the United States. The company cites automotive tariffs imposed by President Donald Trump as a significant reason for this decision.
Impact of Tariffs on Volkswagen
The CEO of Volkswagen stated that these tariffs have cost the company approximately $2.5 billion in the first nine months of 2025. Such financial strain has prompted the need for a reassessment of investment plans.
Decline in German Investments
Recent data highlights a notable decline in German investments in the US. In 2025, these investments fell 45% year-on-year. This drop is attributed to the increasing burden of tariffs.
- German exports to the US have also decreased.
- The depreciation of the dollar may have played a role in this decline.
Global Trade Uncertainty
The automotive tariffs have not only affected Volkswagen but have also contributed to broader economic concerns. President Trump recently warned of potential additional duties on European goods during a speech at the World Economic Forum.
This announcement has intensified fears over global trade stability. As a result, gold prices surged to over $5,000 per ounce for the first time, reflecting increasing market uncertainty.
