Volkswagen will temporarily suspend price increases in the US before month-end in May.

According to foreign media reports, Kjell Gruner, CEO of Volkswagen North America, recently stated that the automaker will maintain the selling prices of its car models in the US market until the end of May. This makes Volkswagen another automaker to attract customers to its dealerships through a price stabilization policy, following the Trump administration's tariff hikes.

In an interview at the New York International Auto Show, Gruner said, "Although we don't even know what the regulatory or tariff environment will be like next week, we hope to keep car prices unchanged until the end of May to give our consumers and dealers confidence."

This move by Volkswagen aligns with previous decisions by Hyundai Motor Company, Ford Motor Company, and Stellantis NV, aiming to alleviate concerns about the potential thousands of US dollars increase in car prices due to the Trump administration's 25% tariff on imported cars. Automakers such as Ford, Stellantis, and Nissan have also introduced car purchase incentives to attract consumers eager to place orders amid policy uncertainty. With the average price of a new car in the US now exceeding $50,000, combined with the pressure of high interest rates, most consumers are deterred from purchasing cars.

Volkswagen's decision to maintain price stability has clarified earlier market rumors. There were previous reports suggesting that the group planned to directly pass on import costs to end-user selling prices. Gruner explained that the company had only sought advice from dealers on communication plans regarding potential price adjustments and tariff costs, which was misinterpreted as a set price increase plan.

However, Gruner further stated that if tariffs persist, Volkswagen's main brands may allocate tariff costs to suppliers, dealers, and consumers after May. He also added that any increase in Volkswagen car model prices from June onwards would be based on a careful analysis of Volkswagen's automotive supply chain, tariff costs, and competitor situations.

At the New York event, Gruner showcased the new version of Volkswagen's popular car model, the Tiguan. This SUV model, produced at Volkswagen's Puebla, Mexico, factory, now faces a 27.5% tariff under the automotive import tariff regulations that took effect on April 3. In contrast, under the United States-Mexico-Canada Agreement (USMCA) trade deal negotiated during Trump's first term with Mexico and Canada, the previous tariff was 2.5%.