Volkswagen AG plans to add import fees to the sticker prices of its vehicles shipped into the US, indicating Donald Trump’s 25% auto tariffs will have an immediate effect on Europe’s biggest carmaker.

Leaders in both countries warned that tariffs would fan inflation in the United States and upend global supply chains.

Germany's Volkswagen, Mercedes-Benz Group and BMW were all trading around 2% lower at 11:45 a.m. London time (6:45 a.m. ET), while Milan-listed Stellantis dipped 1%. Shares of Sweden's Volvo Cars, however, tumbled more than 10%.

Car sales have surged at North Texas dealerships in recent weeks as buyers anticipate higher prices due to President Trump's new tariffs on auto imports. Why it matters: Tariffs could complicate the car market if they last longer than three months,

European carmakers are trying to work out how much their prices might have to rise in response to looming U.S. import tariffs, industry sources said.

Global markets and businesses were thrown into disarray by U.S. President Donald Trump’s tariff announcements on Thursday.

European automakers, already struggling with tepid economic growth at home and rising competition from China, on Thursday decried the U.S. import tax on cars as a heavy burden that will punish

European stocks are expected to open sharply lower Thursday as global markets react to new automotive tariffs announced by U.S. President Donald Trump.

An American Compass analysis attributes the quotas to an 8% increase in the cost of vehicles, more than 100,000 new U.S. jobs, eight new auto assembly plants, 300 new production facilities and more than $25 billon in foreign investment.