No Result
View All Result
SUBMIT YOUR ARTICLES
  • Login
Thursday, October 2, 2025
TheAdviserMagazine.com
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
No Result
View All Result
TheAdviserMagazine.com
No Result
View All Result
Home Market Research Business

Volkswagen seeks audience with Trump, dangling more than $10 billion in U.S. investments in exchange for tariff exemptions

by TheAdviserMagazine
2 months ago
in Business
Reading Time: 3 mins read
A A
Volkswagen seeks audience with Trump, dangling more than  billion in U.S. investments in exchange for tariff exemptions
Share on FacebookShare on TwitterShare on LInkedIn



Oliver Blume wants to make a deal. The CEO of Volkswagen Group, the world’s second-largest carmaker, is prepared to put a minimum of $10 billion on the table in exchange for lower tariffs levied by the Trump administration.

Under the proposal, for every dollar that Volkswagen invests, it would like to receive in return an equal amount offset against its tariff bill. The VW boss is only waiting on the European Commission to reach a deal on behalf of the entire EU so he then knows what precise rates he can expect on goods exported to the U.S. market.

“Every company has got a special situation in the U.S., and therefor I think it should be possible to add a specific deal on company level,” Blume said on Friday, after revealing his company just paid $1.4 billion to the U.S. customs authorities. “We can offer huge investments.”

Volkswagen already operates a U.S. assembly plant in Chattanooga, Tennessee, where it builds the Atlas SUV and ID.4 electric crossover. It is currently investing $2 billion in a new site in Blythewood, South Carolina, where it plans a new family of electrified vehicles under the resurrected Scout brand first launched by defunct manufacturer International Harvester. VW could not confirm whether this figure was included in the $10 billion.

Typically, trade policy falls under the responsibility of Congress. But the White House capitalized on a legal loophole to seize control over tariff rates by declaring the import of foreign-built passenger cars to pose a demonstrable risk to national security. His administration argues the U.S. must rebuild a domestic manufacturing base gutted by the offshoring of jobs abroad that can ward off potential military threats 

Bilateral deals could prove costly in the long run

A special quid-pro-quo exemption or carve-out negotiated bilaterally between a corporation and a federal government is not typical under the rules governing World Trade Organization members like the United States.

Thanks to the two previous U.S. administrations, the WTO’s ability to settle and enforce trade disputes has been neutralized when its highest court—known as the Appellate Body—was effectively dismantled. At the end of 2019, Trump blocked appointments needed to achieve a quorum in a tactic that was later adopted by President Biden as well.

Irrespective of the legal issue, the idea that corporations could sidestep their national governments by lining up, one after the other, to each strike their own special deal with the White House has experts concerned that the rules of trade could end up becoming permanently chaotic.

“This is a new development that is anything but positive, since it introduces unpredictability. In the long run it could prove very expensive when it comes to overall prosperity,” says Julian Hinz, a director of the Trade Research Center at Germany’s Kiel Institute for the World Economy (IfW).

The White House could not be reached immediately by Fortune for comment.

Guidance cut

“The great thing about the rules-based system is that they were valid for everyone—you didn’t have to negotiate with every conceivable economic actor,” the global trade economist told Fortune. “It might offer a temporary advantage over your competitors, but it’s extremely myopic.” 

Earlier on Friday the company behind VW, Audi, and Porsche slashed its 2025 guidance across the board, reducing expectations for everything from its annual sales revenue and it operating margin through to even how much cash it has at year-end. 

And the chief culprit, according to Volkswagen Group, is the 27.5% duty levied by the president on all vehicles and car parts entering the United States. The gross sum from tariffs is estimated to wipe a full two percentage points off its operating margin should they remain at current levels.

Once planned mitigation efforts are factored in this would result in a 4% operating profit margin. In a more optimistic scenario based on tariffs of just 10%, it expects that number to hit 5%. Previously it had guided for a range of 5.5% to 6.5% versus 5.9% in 2024.

Its tariff bill to the U.S. Customs and Border Patrol ballooned from €100 million ($117 million) in the first three months of this year to €1.2 billion in the second quarter alone. That means the $1.4 billion in equivalent U.S. currency it paid exceeds the $1.1 billion that Detroit rival General Motors paid during the past three months.



Source link

Tags: AudienceBilliondanglingExchangeexemptionsInvestmentsseeksTariffTrumpU.SVolkswagen
ShareTweetShare
Previous Post

The Enemy of Your Enemy is Not Your Friend

Next Post

Can IV Therapy Cure Hangovers, Boost Your Energy, and Supercharge Your Immune System?

Related Posts

edit post
Lyft CEO on the time Bill Gates told him he was making ‘the stupidest decision I’ve ever heard anyone made’

Lyft CEO on the time Bill Gates told him he was making ‘the stupidest decision I’ve ever heard anyone made’

by TheAdviserMagazine
October 1, 2025
0

Before David Risher was tasked with scripting a “comeback story” for ride-sharing company Lyft, he made a career move so...

edit post
The rise of the bro co-CEO

The rise of the bro co-CEO

by TheAdviserMagazine
October 1, 2025
0

Yesterday, Spotify founder and CEO Daniel Ek announced that he’ll be stepping down in the new year. Two of his...

edit post
AI godfather warns humanity risks extinction by hyperintelligent machines with their own ‘preservation goals’ within 10 years

AI godfather warns humanity risks extinction by hyperintelligent machines with their own ‘preservation goals’ within 10 years

by TheAdviserMagazine
October 1, 2025
0

The so-called “godfather of AI”, Yoshua Bengio, claims tech companies racing for AI dominance could be bringing us closer to...

edit post
Conagra Reaffirms Outlook Even As Tariffs Add To Inflation

Conagra Reaffirms Outlook Even As Tariffs Add To Inflation

by TheAdviserMagazine
October 1, 2025
0

Conagra Brands Inc. (NYSE:CAG) on Wednesday posted first-quarter fiscal 2026 results that topped Wall Street expectations but showed year-over-year declines....

edit post
US markets regulators start shuttering as government shutdown cuts federal funding

US markets regulators start shuttering as government shutdown cuts federal funding

by TheAdviserMagazine
October 1, 2025
0

U.S. market regulators began the process of furloughing workers on Wednesday as the federal government shut down after Congress failed...

edit post
Central Asia’s maiden crypto fund launched in Kazakhstan

Central Asia’s maiden crypto fund launched in Kazakhstan

by TheAdviserMagazine
October 1, 2025
0

Central Asia's maiden Crypto fund has been launched in Kazakhstan.Alem Crypto Fund has started operating in Kazakhstan. It was established...

Next Post
edit post
Can IV Therapy Cure Hangovers, Boost Your Energy, and Supercharge Your Immune System?

Can IV Therapy Cure Hangovers, Boost Your Energy, and Supercharge Your Immune System?

edit post
Tourists in Rio May Soon Pay with Crypto as Bybit and Tether Expand

Tourists in Rio May Soon Pay with Crypto as Bybit and Tether Expand

  • Trending
  • Comments
  • Latest
edit post
What Happens If a Spouse Dies Without a Will in North Carolina?

What Happens If a Spouse Dies Without a Will in North Carolina?

September 14, 2025
edit post
California May Reimplement Mask Mandates

California May Reimplement Mask Mandates

September 5, 2025
edit post
Does a Will Need to Be Notarized in North Carolina?

Does a Will Need to Be Notarized in North Carolina?

September 8, 2025
edit post
Who Needs a Trust Instead of a Will in North Carolina?

Who Needs a Trust Instead of a Will in North Carolina?

September 1, 2025
edit post
DACA recipients no longer eligible for Marketplace health insurance and subsidies

DACA recipients no longer eligible for Marketplace health insurance and subsidies

September 11, 2025
edit post
‘Quiet luxury’ is coming for the housing market, The Corcoran Group CEO says. It’s not just the Hamptons, Aspen, and Miami anymore

‘Quiet luxury’ is coming for the housing market, The Corcoran Group CEO says. It’s not just the Hamptons, Aspen, and Miami anymore

September 9, 2025
edit post
2026 Tax Calculator | One Big Beautiful Bill Tax Calculator

2026 Tax Calculator | One Big Beautiful Bill Tax Calculator

0
edit post
Tokenized Money Market Funds Emerge, Piloted by Industry Big Whigs

Tokenized Money Market Funds Emerge, Piloted by Industry Big Whigs

0
edit post
Ten Grocery Items You Can Get for Less than  shipped!

Ten Grocery Items You Can Get for Less than $2 shipped!

0
edit post
Dublin biotech Aerska launches with €17.8M Seed round to tackle Alzheimer’s and Parkinson’s 

Dublin biotech Aerska launches with €17.8M Seed round to tackle Alzheimer’s and Parkinson’s 

0
edit post
Export Software

Export Software

0
edit post
Quad-A gets record attendance, despite DEI pushback

Quad-A gets record attendance, despite DEI pushback

0
edit post
Investing Lessons From Video Game Economies: What Fortnite and Roblox Can Teach You About Money

Investing Lessons From Video Game Economies: What Fortnite and Roblox Can Teach You About Money

October 1, 2025
edit post
Pi Network arms its testnet with a DEX and AMM for DeFi innovation

Pi Network arms its testnet with a DEX and AMM for DeFi innovation

October 1, 2025
edit post
Investor Purchases Surge Despite Mortgage Rates—What’s Driving It?

Investor Purchases Surge Despite Mortgage Rates—What’s Driving It?

October 1, 2025
edit post
Judge nixes ex-Well Fargo broker’s tax write-off claim

Judge nixes ex-Well Fargo broker’s tax write-off claim

October 1, 2025
edit post
Why Do The Most Successful People Sleep So Much?

Why Do The Most Successful People Sleep So Much?

October 1, 2025
edit post
DEPIN Project Spacecoin Executes First Blockchain Transaction in Low Earth Orbit

DEPIN Project Spacecoin Executes First Blockchain Transaction in Low Earth Orbit

October 1, 2025
The Adviser Magazine

The first and only national digital and print magazine that connects individuals, families, and businesses to Fee-Only financial advisers, accountants, attorneys and college guidance counselors.

CATEGORIES

  • 401k Plans
  • Business
  • College
  • Cryptocurrency
  • Economy
  • Estate Plans
  • Financial Planning
  • Investing
  • IRS & Taxes
  • Legal
  • Market Analysis
  • Markets
  • Medicare
  • Money
  • Personal Finance
  • Social Security
  • Startups
  • Stock Market
  • Trading

LATEST UPDATES

  • Investing Lessons From Video Game Economies: What Fortnite and Roblox Can Teach You About Money
  • Pi Network arms its testnet with a DEX and AMM for DeFi innovation
  • Investor Purchases Surge Despite Mortgage Rates—What’s Driving It?
  • Our Great Privacy Policy
  • Terms of Use, Legal Notices & Disclosures
  • Contact us
  • About Us

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.