Audi Hits the Brakes on U.S. Deliveries After 25% Tariff Spike

Photo provided by Audi
Photo provided by Audi

Audi has announced a complete halt to vehicle exports to the U.S. starting July 7, following President Donald Trump’s implementation of a 25% additional tariff. This decision comes just two days after the Trump administration formalized high tariffs on imported vehicles. Audi plans to suspend sales of new cars arriving at ports and focus on selling its existing inventory.

Audi’s announcement marks the second export halt declaration to the U.S. by a European automaker, following the UK’s Jaguar Land Rover(JLR). German media outlet Der Spiegel reports that Audi’s U.S. division is carefully evaluating the impact of the additional tariffs while considering the interests of its customers and dealers.

According to market research firm MarkLines, Audi sold approximately 200,000 vehicles in the U.S. in 2024. Without a domestic assembly factory, the company imported all its vehicles from Mexico, Germany, and Hungary. Audi currently holds a stock of 37,000 vehicles in the U.S., equivalent to about two months’ worth of sales. This inventory, imported before April 2, will be sold at existing prices without the new tariffs applied.

The Volkswagen Group is reportedly exploring options to expand its passenger car assembly factory in Tennessee to begin producing vehicles for Audi and other brands.

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