BENGALURU (April 3): Volkswagen will introduce an "import fee" on vehicles affected by 25% tariffs imposed by US President Donald Trump, The Wall Street Journal reported on Wednesday.

The German automaker has temporarily halted rail shipments of vehicles from Mexico and will hold at port cars arriving by ship from Europe, the report said, citing a memo to retailers.

Trump's 25% auto tariffs will cover more than US$460 billion (RM2.05 trillion) worth of imports of vehicles and auto parts imports annually, according to a Reuters analysis of tariff codes included in a federal register notice.

Volkswagen's response to the tariffs was first reported by trade publication Automotive News.

Volkswagen told its dealers that it would give more details by mid-April on pricing strategies for tariff-affected cars, and plans to begin allocating those vehicles to stores by the end of the month, the WSJ report said.

"We want to be very transparent about navigating through this time of uncertainty," Volkswagen told the Journal.

Volkswagen did not immediately respond to a Reuters request for comment.

Last week, the carmaker said that US tariffs and any counter-tariffs would have negative consequences for growth and prosperity in the US and other economic areas.

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