Volkswagen Seeks $10B US Investment Deal to Offset Tariffs

Volkswagen CEO Oliver Blume is seeking a special agreement with the U.S. government to reduce tariffs by offering substantial investments in the American market, contingent upon a broader trade deal between the U.S. and the EU. Blume proposed a plan where every dollar Volkswagen invests in the U.S. would correspond to an equivalent tariff waiver, with potential investments exceeding $10 billion, including projects like the Scout brand revival and possibly a new Audi plant. The company has already faced significant financial impact from President Donald Trump's 25% tariffs on car imports, which contributed to a one-third decline in operating profits in the first half of 2025. Volkswagen hopes that the anticipated U.S.-EU trade deal will lower tariffs to around 15%, similar to the recent arrangement with Japan, and that a tailored company-level deal would follow. While trade policy typically involves Congress, the Trump administration has used national security justifications to impose tariffs, complicating negotiations. Blume emphasized that such an agreement would benefit both Volkswagen's growth in the U.S. and the American economy, reflecting ongoing positive discussions with the U.S. government.