The Wall Street Journal reported that Volkswagen would introduce an "import charge" on affected vehicles by the 25% tariffs levied by U.S. president Donald Trump.

Reports citing an internal memo sent to retailers said that the German automaker had temporarily stopped rail shipments from Mexico, and would hold cars arriving from Europe by ship at port.

According to an analysis of tariff codes in a Federal Register notice, Trump's 25% auto duties will cover imports of auto parts and vehicles worth more than $460 billion annually.

Volkswagen informed its dealers that they would provide more information by mid-April about pricing strategies for cars affected by tariffs, and planned to start allocating these vehicles to stores at the end of this month. Volkswagen told The Journal that it wanted to be transparent in navigating this period of uncertainty.

Volkswagen didn't immediately respond to our request for comment.

Last week, the automaker stated that U.S. Tariffs and any Counter-Tariffs would negatively impact growth and prosperity for the U.S. as well as other economic areas.

(source: Reuters)