Following Volkswagen, its sister brand Audi is now responding to the increased tariffs in the US. This means that all exports to the country are being held back.
Audi has now stopped exporting all new cars to the US. The decision is a direct response to the new US auto tariffs. The new rules mean a 25 percent duty on imported cars.
The German automaker is significantly affected by the new tariffs. Last year alone, Audi sold 196,000 cars in the US market. That's a significant number for the brand.
The challenge for Audi is that they don't have a single car factory in the US. Therefore, all new Audis sold in the country are imported. This makes the brand vulnerable to import duties.
The vast majority of Audi's cars for the American market come from factories outside the United States. The cars are produced in countries such as Mexico, Germany, Hungary and Slovakia.
Those cars are now all subject to the new 25 percent tariff, which significantly increases the cost of selling the cars in the United States.
Trump's tariffs hit German car production
Audi is not alone in reacting to the tariffs. Audi's parent company, the Volkswagen Group, has made a similar decision. They are also stopping imports of cars into the US.
It was the German newspaper Die Zeit that first reported that Audi is halting all exports. The halt applies with immediate effect to new deliveries.
Cars that have already arrived at US ports after April 2nd will be held back. They will not be released to dealers at this time.
However, this does not mean a complete sales halt for Audi in the US just yet. The brand still has a stock of cars in the country.
There are around 37,000 unsold Audi cars ready in the US. Those cars arrived in the country, because the new customs rules came into force.
Consequences for Audi in the US market
The 37,000 cars can still be sold without the new duty. This gives Audi breathing room to deal with the situation. Sales can therefore continue for a period from the existing stock.
The import ban marks a significant change for Audi in the important US market. The situation is due to tariffs imposed by the Donald Trump administration.
How the situation will develop in the longer term is still uncertain. It depends on the trade relations between the United States and the countries where Audi produces its cars.
Audi is now following the development closely. The German car manufacturer must assess its options in the American market going forward.
The consequences could potentially affect Audi's market share and sales strategy in the U.S. However, it is too early to say anything concrete about the long-term effects.
Trade conflicts like this can have major consequences for global companies like Audi. The automotive industry is particularly sensitive to duties and tariffs.
At Boosted.dk we keep an eye on developments for Audi and other car brands – also when it comes to the current tariff war .
You can read a lot more about Audi, find reviews of their latest models or see cool conversions of classic Audi cars on our website.
