Volkswagen scraps “import fee” and joins rivals in temporarily freezing US car prices

Volkswagen joins Hyundai, Ford, Stellantis, and Toyota in giving a specific timeline for its tariff-proof US pricing.

4/16/25 2:23PM

Europe’s largest automaker appears to be pivoting its US tariff strategy, at least until June.

Volkswagen said it will freeze its US prices through the end of next month, a U-turn from reports earlier this month that the automaker would tag all tariff-affected vehicles into the US with an “import fee.” VW’s North America CEO now says those reports were the incorrect interpretation of communication between the automaker and its dealer network.

Earlier this month, Volkswagen’s Audi brand said it’s holding vehicles that arrived after the initial 25% auto tariffs went into effect in US ports.

By keeping prices steady until the end of spring, Volkswagen mirrors the strategies of rivals Ford and Hyundai, both of which announced price freezes until early June. Stellantis and Toyota won’t raise the cost of their vehicles until at least the end of April (ahead of additional 25% tariffs on auto parts that take effect May 3).

Price freezes, discounts, and fear of coming price hikes caused car sales to surge in March. The Census Bureau on Wednesday estimated that retail sales at motor vehicle and parts dealers — adjusted for seasonality but not price changes — rose to nearly $144 billion last month, up 8.8% from the same month last year.

Automakers’ tariff pricing strategies appear to have a close relationship to their US inventory levels. VW this month said it has enough US inventory for two months of sales (37,000 vehicles), matching the length of its price freeze. After that point, many experts anticipate wide-ranging price hikes across the auto industry.

“All signs point to higher prices this summer, as existing ‘pre-tariff’ inventory is sold down to be eventually replaced with ‘tariffed’ inventory,” Cox Automotive analyst Erin Keating said this month.

On Monday, President Trump suggested that some form of relief from his tariffs could be coming for automakers that are in the process of shifting production to the US.

Max Knoblauch4/9/26

American Airlines joins the flock, hiking bag fees amid higher jet fuel prices

American Airlines on Thursday announced that it, too, will be hiking the fees it charges customers to check luggage.

With the move, all four of the major US airlines, which together control about 80% of the US market, have now hiked their baggage fees in recent days amid surging jet fuel prices.

The change will go into effect on tickets bought on or after Thursday, the same day Southwest’s hike begins.

Since late March, JetBlue, Delta Air Lines, United Airlines, Canada’s WestJet, and Southwest have hiked their fees. Experts expect more major carriers to follow, and to potentially tweak the pricing of other ancillary revenue sources like seat assignments and carry-on luggage.

American Airlines updates bag fees and Basic Economy fares

The change will go into effect on tickets bought on or after Thursday, the same day Southwest’s hike begins.

Max Knoblauch4/9/26

Less than a year after implementing them, Southwest is also hiking its bag fees

Southwest Airlines has joined the growing list of airlines opting to hike their bag fees amid sustained higher jet fuel costs.

Starting today, the first checked bag at the carrier — which implemented bag fees less than a year ago — will jump from $35 to $45, and the second from $45 to $55. Southwest quietly disclosed the change Tuesday.

Southwest assigned the decision to “part of an ongoing analysis of the business and against the evolving global backdrop.”

As of Wednesday, jet fuel prices dropped to $4.16 a gallon, per the Argus US Jet Fuel Index, down from $4.81 on Tuesday following President Trump’s ceasefire announcement, which sent travel stocks soaring. Major airlines have shed some of those gains in premarket trading Thursday.

With the move to hike bag fees, Southwest joins JetBlue, United Airlines, Delta Air Lines, and Canada’s WestJet, all of which also boosted fees this month. Experts expect more major carriers to follow, and to potentially tweak the pricing of other ancillary revenue sources like seat assignments and carry-on luggage.