In reaction to the 25% tariff announced by the White House this week, the Volkswagen Group has moved to react to the minimize losses by halting imports of cars into the United States. The move includes Audi.
According to statements by the company, cars arriving after the April 2 effective date will be held at ports.
At the same time, the manufacturer has instructed dealers to work with the existing inventory of 37,000 vehicles. The number is estimated by Automotive News to represent about two months of sales.
As compared to Volkswagen, the situation is a particularly challenging one for Audi. Whereas VW maintains a production facility in Chattanooga, TN where it builds both internal combustion and electric models, Audi’s only North American facility that builds the world supply of the Q5 is located in Mexico.
Further, Audi had big plans for new model rollouts in 2025 laid out prior to the current trade war began. Should the tariffs remain in place for an extended period of time, the brand could be seriously hampered at a critical time.
Interestingly, it appears Bentley will continue importing cars. While not siting their reasoning for the difference, a Bentley representative (presumably in England) told CAR Magazine that the brand had “no plans to pause imports” into what is that brand’s largest market, and that it is “still undecided” on whether it can absorb the 25% tariff or will need to pass it along to customers.