President Donald Trump’s tariffs on imported cars have yielded yet another win for the American auto industry as Volkswagen plans a “massive” investment in the United States to avoid such duty costs.
In April, Trump announced 25 percent tariffs on auto imports to protect the nation’s auto workers and industry from unfair competition.
Volkswagen, as a result, has entered negotiations with the Trump administration, reportedly resulting in plans for a large investment in the U.S. auto industry, according to The Guardian:
Volkswagen, Europe’s largest industrial group, has said it will make a “massive” investment in the US. The group, which includes Porsche, revealed it has been in direct talks with Donald Trump’s administration as it faces damaging tariffs. [Emphasis added]
Oliver Blume, who heads the group, said the talks were “constructive” and “fair”, in an interview that suggests the company, whose market capital is £44bn, is not willing to leave tariff negotiations to Brussels alone. [Emphasis added]
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He said the Volkswagen Group “intends to continue investing in the US” and would build on its partnership with the American electric vehicle manufacturer Rivian with “further, massive investments.” [Emphasis added]
In March, Vice President JD Vance told companies that investment in the U.S. is the best way to avoid tariffs.
“The way to avoid application of the tariff is to have your factory and have your facility in the United States of America; that is the way. Invest in America, that is how you will avoid being penalized by these tariffs,” Vance said.
The United Auto Workers (UAW), the largest union representative of American auto workers, has praised the tariffs and thanked Trump for “stepping up to end the free trade disaster that has devastated working class communities for decades.”
John Binder is a reporter for Breitbart News. Email him at [email protected]. Follow him on Twitter here.
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