Trump Forces Carmakers to Game Out Calculus on American Plants

Volkswagen AG has been wanting to build more cars in North America.

Now, as Donald Trump embarks on a trade war that’s roiled the global auto industry, the German carmaker’s calculus has grown far more complicated.

About this time last year, the company was considering expanding a plant in Tennessee, using a factory it’s planning in South Carolina or boosting operations in Mexico. Executives are now looking primarily at options in the US Southeast, according to people familiar with the matter. A final decision may be a ways away and depends on the outlook for Trump’s levies, said the people, ...