By Steven Symes 
With the state of tariffs in question, German automaker Volkswagen says prices for new cars won’t increase, for now. The company is only promising price stability through the end of June. That’s only a few weeks away, with what comes next unclear for now.
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This announcement comes after VW brass blamed serious financial damage from the first quarter of this year on President Trump’s tariffs. The company experienced a 37 percent drop in operating profits for Q1 2025.
Despite taking that damage, Volkswagen has decided to hold prices steady until at least the beginning of July. Instead of passing the fees associated with importing certain models into the US on to consumers, for now the automaker is just eating those.
But that might change in a few weeks. What happens in July is a bit of a mystery now, although BMW said in early May the tariffs situation would shift in July, so maybe it was onto something?
The state of tariffs are uncertain after the US Court of International Trade ruled President Trump couldn’t unilaterally impose tariffs on imports from other countries. While that legal move has given critics of the president’s foreign economic policies some hope, it appears the situation is very fluid.
As Goldman Sachs has said, President Trump can use other tools at his disposal to get around that ruling, still imposing tariffs on imported goods like cars. Perhaps that’s why Volkswagen has a wait-and-see disposition about everything.
While some automakers have made few changes as a result of the tariffs threat, others have made big commitments to manufacturing cars inside the United States. President Trump could be reshaping the auto industry as well as the global economy if he’s successful moving forward.
Image via Volkswagen