Carmakers get clobbered

Volkswagen today said its U.S. tariff bill was roughly $1.5 billion for the first half, as the German company becomes the latest tangible example of how the trade war is ravaging automakers' bottom lines.

• 🇺🇸 America's largest carmaker, GM, just reported a $1.1 billion sting from tariffs in the second quarter.
• 🇪🇺 And Stellantis, the European maker of Jeep, said it expects a $350 million hit to its earnings over the first half, attributed directly to U.S. tariffs and its moves to try to avoid them.

The big picture: Nearly every automaker is dealing with President Trump's 25% tariff on imported cars and parts since earlier this year, given the global nature of the industry's supply chains.

• ♟️So far, at least, most have chosen to eat the extra costs, holding back on raising prices while they minimize tariffs as much as possible with some strategic chess.

Most are also waiting to see where tariffs ultimately land in country-specific trade deals, with expectations forming behind a 15% rate like the one the U.S. just reached with Japan.

🤝 The intrigue: Volkswagen CEO Oliver Blume today told investors that the company is also hoping for a specific deal with the U.S. on top of any country-level deals, citing its sizable investment commitments in the country.

• "We have been already in good discussions with [the Trump administration], and we need then the opportunity after the EU deal to enter with a specific deal," he said.

💰 Further reading: What might the U.S. government do with all this tariff revenue? Trump today floated the idea of rebate checks for some Americans, Axios' Ben Berkowitz writes.