Volkswagen U.S. sales fall 20% as tariffs and end of EV incentives bite

Volkswagen’s sales in the United States fell 20 percent in the last three months of 2025, the German automaker said, a decline the company and analysts attributed to tariffs, trade conflict and the withdrawal of tax credits and other incentives for electric vehicles. Industry observers say Volkswagen’s experience highlights a widening divergence between the U.S.

market and the rest of the world, where electric vehicle sales are growing. Republicans in Congress and the Trump administration eliminated tax credits that had supported EV purchases, and policy now favors fossil fuels, the report said. Tariffs on imported cars and parts have raised Volkswagen’s costs, forcing the company to choose between higher prices that could further hurt sales or sacrificing profit.

The levies will remain in place even if the Supreme Court strikes down many other Trump-era tariffs, a ruling expected soon. Volkswagen reported a €1.1 billion loss in the third quarter of 2025 and blamed tariffs in part for the result. Volkswagen sold 330,000 vehicles in the United States last year, down 13 percent from 2024, while Toyota sold more than 2.1 million, the article said.

Sales of the U.S.-made ID.4 fell 60 percent in the fourth quarter after Congress eliminated tax credits of up to $7,500.

Key Topics

Business, Volkswagen, Tariffs, Tax Credits, Electric Vehicles