Volkswagen, the German automaker, has informed its automotive sellers that it plans so as to add an import charge later this month to the worth of imported vehicles offered in the USA.

The corporate’s transfer is among the first and clearest examples of automakers utilizing value will increase to take care of the 25 % tariffs President Trump imposed on automotive and auto elements imports. The tariffs on autos went into impact on Thursday and the levies on elements will turn into efficient on Could 3.

In an April 1 memo to sellers, Volkswagen stated that the precise charges could be decided by the center of April. The New York Instances reviewed a duplicate of the memo. The automaker additionally informed sellers it deliberate to chop again on gross sales incentives and had halted rail shipments of vehicles to the USA from its vegetation in Mexico, though shipments by sea proceed.

Volkswagen plans to carry vehicles which might be topic to the tariffs in port for “the close to time period.” It additionally informed sellers that the worth of the Volkswagen Atlas sport utility automobile, which is made in Chattanooga, Tenn., could possibly be affected by the tariffs as a result of it contains vital imported elements. The extent of the affect almost definitely won’t be recognized till Could, the memo stated.

The automaker, together with its Audi and Porsche manufacturers, imports virtually all of the vehicles it sells in the USA. In addition to the Atlas, Volkswagen additionally assembles the ID.4 electrical sport-utility automobile in Tennessee.

In an announcement, Volkswagen confirmed it had despatched the memo to sellers as a result of it needed to be “very clear about navigating by means of this time of uncertainty.”

“We now have our sellers’ and clients’ finest curiosity at coronary heart, and as soon as now we have quantified the affect on the enterprise we are going to share our technique with our sellers,” the corporate stated.

Different automakers are additionally making changes to reply to the tariffs. Stellantis, which owns Jeep, Ram, Dodge and Chrysler, stated on Thursday that it’s briefly halting manufacturing at a plant in Mexico and one other in Canada in response to the auto tariffs.

The corporate stated {that a} manufacturing unit in Windsor, Ontario, that makes the Chrysler Pacifica minivan and the Dodge Charger muscle automotive will shut down for 2 weeks. And a plant in Toluca, Mexico, that makes the Jeep Compass and Wagoneer S can be idled beginning on April 7 for the remainder of the month.

Stellantis stated that the manufacturing stoppages in Canada and Mexico would power it to put off about 900 staff in Indiana and Michigan.