Volkswagen halts ID.Buzz exports to the US amid increased tariffs

Volkswagen has stopped exports of its electric ID.Buzz van to the US. While an official recall is cited as the reason, insiders point to punitive tariffs imposed by US President Donald Trump. The abrupt halt could endanger VW’s plans to position the electric Bulli as a flagship model in North America.

The news was first reported by the Handelsblatt, citing company sources. Officially, the stoppage is attributed to a recall over seat width compliance in US models issued in May. “As a result of a recall for a rear bench seat that is deemed too wide by authorities, the ID.Buzz is currently not being exported to North America,” confirmed a spokesperson for Volkswagen Commercial Vehicles to the German newspaper. However, the manufacturer points out that exports to the rest of the world rose by about 70 per cent in the same period.

Yet insiders suggest the recall is not the real issue. “It’s not the recalls, it’s the tariff situation,” one source told Handelsblatt, referring to steep import duties introduced under US President Donald Trump. Since April, Washington has imposed a 27.5 per cent import tariff on European-made vehicles, up from 2.5 per cent. This rate was extended in May to also cover components such as motors, batteries, tyres, and shock absorbers, rendering exports of the Hannover-built ID.Buzz economically unviable.

As per the report, data from Marklines indicates the dramatic impact: while Volkswagen exported over 1,900 ID.Buzz units to the US in Q1, that figure plummeted to around 570 in Q2, with only two vehicles shipped in May. CEO Oliver Blume has openly criticised the new trade barriers, stating that exports under such conditions “no longer make sense”.

The stakes are high. The US remains the world’s second-largest passenger car market, after China. Handelsblatt cites industry insiders warning that tariffs have already become a “multi-billion euro burden” for German manufacturers. Analysts at Bernstein estimate a cumulative impact exceeding eleven billion euros in 2025 alone.

Volkswagen Group just reported its delivery figures for the second quarter of 2025. Looking at just VWCV, sales nearly doubled compared to the same period last year. However, that is for all markets. Looking at the first half, deliveries are up 73.4 per cent YoY. However, when looking at deliveries by market (across all group brands), the figures are down 5.2 per cent in the second quarter – but up by more than 24 per cent when looking at the entire first half of 2025.

Talks continue on possible trade solutions. Volkswagen, Mercedes-Benz, and BMW executives have proposed an export credit mechanism, offsetting imports from Europe against exports from US production sites, or quota systems similar to the UK-US arrangement capping annual volumes at reduced tariff levels. Either way, the decision to halt exports of the iconic Volkswagen could mark a significant setback for the automaker’s electrification strategy in North America, where the long-wheelbase ID.Buzz had been developed specifically for market preferences.

VW had initially targeted annual US sales of 40,000 units, positioning the electric Bulli as a lifestyle flagship. Those ambitions are now in question. Local production is unlikely; the ID.Buzz is built by Volkswagen Commercial Vehicles in Hannover, whereas US EV manufacturing is limited to the Chattanooga plant producing the ID.4. Moreover, the US President just signed his “One Big Beautiful Bill” into law, which will scrap EV subsidies from 30 September.

Whether the ID.Buzz will cross the Atlantic again depends heavily on an EU-US tariff deal. As an insider told the Handelsblatt: “We urgently need relief.”

handelsblatt.com (in German)