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2w ago

Audi Halts U.S. Shipments as European Automakers Scramble Over New Tariffs

Volkswagen ramps up U.S. production while EU officials prepare for high-stakes negotiations in response to the 25% auto import tariff imposed by the Trump administration.

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Audi vehicles sit parked at a a dealership, on the day U.S. President Donald Trump is set to announce new tariffs, in Massapequa, New York, U.S., April 2, 2025.

Overview

  • Audi is holding 37,000 vehicles at U.S. ports to avoid the 25% tariff on imported cars implemented on April 2, impacting two months' worth of inventory.
  • Volkswagen has increased production at its Chattanooga, Tennessee plant and is considering shifting production of certain Audi and Porsche models to the U.S. to mitigate tariff effects.
  • European auto executives are set to meet with EU President Ursula von der Leyen to discuss a coordinated response to the tariffs and potential retaliatory measures.
  • The tariffs aim to incentivize foreign automakers to relocate manufacturing to the U.S., aligning with President Trump's trade policy goals.
  • The tariffs have raised concerns over global trade tensions, with potential impacts on pricing, demand, and supply chain logistics for automakers worldwide.