Volkswagen joined Hyundai and Genesis in promising to keep prices steady despite steep new tariffs on cars Wednesday.
Reuters reports, “German carmaker Volkswagen confirmed it is holding prices steady through May, a similar move to Hyundai Motor, which committed to maintaining sticker prices on its current models through June 2.”
The Trump administration is enacting tariffs in two waves. One, which began April 3, applies to finished cars entering the country from outside North America. It has already raised the price of importing many vehicles.
Another, set to take effect May 3 (or earlier if the government succeeds in writing rules to enforce it unusually quickly), will apply to car parts. Since all cars built in the U.S., Canada, or Mexico use imported parts, it will raise the prices of building all cars not affected by the first round.
Related: Where Every Car Sold in America is Built
Both affect Volkswagen. The company builds some cars in Germany for import to the U.S. Those were impacted by round one, the car tariff. VW builds others in North America, with some imported parts. Those will be hit by round two, the parts tariff.
Volkswagen last month announced plans to add an “import fee” line to the window stickers on its cars, showing Americans how much the tariff impacted the price.
The company hasn’t executed that move yet, reports industry publication Automotive News.
“We need to see where tariffs are,” explained Kjell Gruner, VW Group of America CEO. “If that goes away, the discussion goes away. That’s very easy to see. So let’s see what happens on that side.”