No Result
View All Result
SUBMIT YOUR ARTICLES
  • Login
Thursday, October 23, 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
3 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
High-end housing segment remains hot this Diwali even as overall sales cool off, says Samir Jasuja

High-end housing segment remains hot this Diwali even as overall sales cool off, says Samir Jasuja

by TheAdviserMagazine
October 22, 2025
0

Despite signs of moderation in overall housing sales and new project launches across major Indian cities, the luxury housing segment...

edit post
Tesla targets 3M vehicle production within 24 months as full self-driving expansion accelerates (NASDAQ:TSLA)

Tesla targets 3M vehicle production within 24 months as full self-driving expansion accelerates (NASDAQ:TSLA)

by TheAdviserMagazine
October 22, 2025
0

Seeking Alpha's Disclaimer: The earnings call insights are compilations of earnings call transcripts and other content available on the Seeking...

edit post
YXT regains compliance with Nasdaq’s minimum bid price requirement (YXT:NASDAQ)

YXT regains compliance with Nasdaq’s minimum bid price requirement (YXT:NASDAQ)

by TheAdviserMagazine
October 22, 2025
0

YXT.com Group Holding Ltd. (NASDAQ: NASDAQ:YXT) said on Wednesday it has regained compliance with Nasdaq’s minimum bid price requirement after...

edit post
Tesla reports record sales, record storage—but profit slips as tax-credit rush pulls demand forward

Tesla reports record sales, record storage—but profit slips as tax-credit rush pulls demand forward

by TheAdviserMagazine
October 22, 2025
0

Tesla’s Q3 2025 update reports record vehicle deliveries and record energy storage deployments, alongside higher revenue, but earnings pressure persisted...

edit post
As national debt accelerates to  trillion, watchdog warns it’s ‘no way for a great nation like America to run its finances’

As national debt accelerates to $38 trillion, watchdog warns it’s ‘no way for a great nation like America to run its finances’

by TheAdviserMagazine
October 22, 2025
0

The U.S. national debt has surged past $38 trillion, according to the U.S. Treasury Department, just two months after surpassing...

edit post
Pegasystems signals accelerating Pega Cloud momentum with ACV growth and partner-driven AI innovation (NASDAQ:PEGA)

Pegasystems signals accelerating Pega Cloud momentum with ACV growth and partner-driven AI innovation (NASDAQ:PEGA)

by TheAdviserMagazine
October 22, 2025
0

Seeking Alpha's Disclaimer: The earnings call insights are compilations of earnings call transcripts and other content available on the Seeking...

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
77-year-old popular furniture retailer closes store locations

77-year-old popular furniture retailer closes store locations

October 18, 2025
edit post
Pennsylvania House of Representatives Rejects Update to Child Custody Laws

Pennsylvania House of Representatives Rejects Update to Child Custody Laws

October 7, 2025
edit post
What to Do When a Loved One Dies in North Carolina

What to Do When a Loved One Dies in North Carolina

October 8, 2025
edit post
Probate vs. Non-Probate Assets: What’s the Difference?

Probate vs. Non-Probate Assets: What’s the Difference?

October 17, 2025
edit post
California Attorney Pleads Guilty For Role In 2M Ponzi Scheme

California Attorney Pleads Guilty For Role In $912M Ponzi Scheme

October 15, 2025
edit post
Baby Boomers Are Flocking to This Florida Town — but Not for the Weather

Baby Boomers Are Flocking to This Florida Town — but Not for the Weather

October 9, 2025
edit post
The biggest crypto wipeout was led not by bitcoin, but much smaller tokens. Here’s what happened

The biggest crypto wipeout was led not by bitcoin, but much smaller tokens. Here’s what happened

0
edit post
7 Organizational Tips to Make Tax Filing Easy

7 Organizational Tips to Make Tax Filing Easy

0
edit post
High-end housing segment remains hot this Diwali even as overall sales cool off, says Samir Jasuja

High-end housing segment remains hot this Diwali even as overall sales cool off, says Samir Jasuja

0
edit post
Tesla targets 3M vehicle production within 24 months as full self-driving expansion accelerates (NASDAQ:TSLA)

Tesla targets 3M vehicle production within 24 months as full self-driving expansion accelerates (NASDAQ:TSLA)

0
edit post
Market Talk – October 22, 2025

Market Talk – October 22, 2025

0
edit post
Bitcoin’s Next Bull Phase Could Be Near As BTC-Stablecoin Ratio Plummets

Bitcoin’s Next Bull Phase Could Be Near As BTC-Stablecoin Ratio Plummets

0
edit post
High-end housing segment remains hot this Diwali even as overall sales cool off, says Samir Jasuja

High-end housing segment remains hot this Diwali even as overall sales cool off, says Samir Jasuja

October 22, 2025
edit post
Bitcoin’s Next Bull Phase Could Be Near As BTC-Stablecoin Ratio Plummets

Bitcoin’s Next Bull Phase Could Be Near As BTC-Stablecoin Ratio Plummets

October 22, 2025
edit post
Tesla targets 3M vehicle production within 24 months as full self-driving expansion accelerates (NASDAQ:TSLA)

Tesla targets 3M vehicle production within 24 months as full self-driving expansion accelerates (NASDAQ:TSLA)

October 22, 2025
edit post
The Evolution of Resale and Recommerce in Retail

The Evolution of Resale and Recommerce in Retail

October 22, 2025
edit post
XRP Derivatives Expand on Bybit—Futures and Options Fuel Market Momentum

XRP Derivatives Expand on Bybit—Futures and Options Fuel Market Momentum

October 22, 2025
edit post
Shutdown hits breakaway advisors starting RIAs

Shutdown hits breakaway advisors starting RIAs

October 22, 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

  • High-end housing segment remains hot this Diwali even as overall sales cool off, says Samir Jasuja
  • Bitcoin’s Next Bull Phase Could Be Near As BTC-Stablecoin Ratio Plummets
  • Tesla targets 3M vehicle production within 24 months as full self-driving expansion accelerates (NASDAQ:TSLA)
  • 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.