Volkswagen CEO Proposes Deal to Trump for Tariff Waiver Exemption
Volkswagen Seeks Tariff Relief with Expanded US Investments
Volkswagen (VW) is actively negotiating with the U.S. government to secure relief from import tariffs by increasing the company's manufacturing presence in the United States. In a series of "fair" and "constructive" talks, VW CEO Oliver Blume has been in contact with U.S. Commerce Secretary Howard Lutnick, with the discussions reportedly extending to the desk of President Donald Trump.
VW currently employs over 20,000 people directly and over 55,000 indirectly in the U.S., with production lines manufacturing cars, school buses, and trucks. The company has also entered a partnership with US EV startup Rivian, with a significant $5.8 billion investment.
CEO Blume has expressed the intention to further expand VW's U.S. investments as part of a broader growth strategy, citing the principle that those who invest in a country should benefit from favorable framework conditions. Blume clarified that he speaks for the VW Group, and any solutions proposed could potentially be applied to other car manufacturers or German companies.
Sources suggest that Volkswagen, BMW, and Mercedes-Benz are holding discussions with the U.S. Department of Commerce about possible tariff concessions. The negotiations are said to revolve around a mechanism that would offset imports with US exports, potentially leading to an agreement that sees these companies reduce their reliance on tariffs in exchange for billions in investments in the U.S.
Analysts view June 2025 as a critical juncture, with a potential breakthrough imminent. This could result in tariff relief or reductions by July, favorably impacting Volkswagen's margins and stock valuation. Success would establish VW as a strategic partner in the U.S. automotive market rather than a trade rival.
CEO Blume noted that his dual roles as CEO of Volkswagen and Porsche are not permanent, though no decisions have been made regarding future focus. The ongoing constructive talks reflect Volkswagen's commitment to the U.S. market and its intention to navigate tariff challenges while bolstering its presence in the world's largest economy.
Volkswagen (VW) intends to implement its expansion plans in the United States as part of a broader growth strategy, focusing on investments that align with the company's employment and community policy. This strategy is built upon the principle that favorable framework conditions should benefit those who invest in a country, which could lead to an increased finance flow and securing significant investments for future business ventures.
