US President Donald Trump is trying to turn back time by using import tariffs as a tool to force international companies to manufacture their products in the United States.

Many companies produce abroad, usually to profit from lower labor costs in their respective host countries, or to have a closer relationship with customers. This creates jobs in foreign markets, which also boosts local sales.

One such company is Volkswagen (VW). Two years ago, the German automaker celebrated its 70th anniversary as a "Brazilian" carmaker. The company began work in Brazil when it opened a warehouse in Sao Paulo on March 23, 1953. The Anchieta factory, VW's first production facility outside Germany, opened shortly thereafter.

"Volkswagen do Brasil has completed 70 years of technological innovation and pioneering spirit," said VW Brazil boss Ciro Possobom at the 2023 celebration. "VW has modernized its Brazilian factories, developed new technologies and is a brand that is much closer to the people today."

A year later, VW announced that it would expand its presence in Brazil by enlarging its four locations in the South American country. At the time, automobile analysts reported that VW planned to spend 7 million Brazilian reals (€1.1 billion, or $1.26 billion) in Brazil by 2026. Now that plan has been revised to 16 billion reals by 2028.

VW's investment in Brazil has largely paid off........

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