VW and Mercedes Answer Trump With Price Hikes, Output Shifts (1)

Europe’s automakers are raising prices and preparing to shift car production to the US to try to protect themselves from President Donald Trump’s tariffs.

Volkswagen AG plans to add import fees to the sticker prices of its vehicles shipped into the US, indicating Trump’s 25% auto duties will have an immediate effect on Europe’s biggest carmaker. Volvo Car AB and Mercedes-Benz Group AG are looking at expanding local output to sidestep the levies.

German carmakers are among the most affected by Trump’s higher levies on auto imports, which are expected to dramatically increase costs and upend supply chains. Robust ...