Audi Halts All Vehicle Exports to the US Due to Tariffs | Carscoops

      Vehicles that reached the United States after April 2 are also currently idle instead of being sent to dealerships.

      Audi has ceased all vehicle exports to the U.S. due to recent import tariffs.

      Dealers have roughly 60 days of inventory left before it runs out.

      Jaguar Land Rover has also stopped shipments to the U.S. in light of the same trade policies.

      Audi's supply line to the U.S. has become strained, and not in a beneficial, German-engineered suspension manner. The company has decided to stop vehicle deliveries to the United States immediately. This move is a direct result of the Trump administration's recently implemented 25% import tariff. Presently, Audi dealers have about two months’ worth of inventory available. Beyond that, they will face crucial decisions.

      On April 2, the U.S. government introduced widespread tariffs, including on certain territories. Within this broad initiative, a 25% tariff was placed on imported vehicles and components. Manufacturers both inside and outside the U.S. are grappling with this decision, and Audi has opted for its immediate strategy.

      The company has suspended imports from its manufacturing plants to the U.S., as confirmed to Automobilwoche. Dealers are currently holding around 37,000 vehicles already in the country, which equates to about 60 days of stock. Additional vehicles are present at import ports in the U.S., but they will not be distributed to dealers until further notice.

      This situation creates a significant turning point for Audi in the coming months. Trump has shown he may not stick to his commitments, which could be Audi's best hope. If the tariffs are rescinded, especially those specific to automobiles, Audi could resume normal operations. If that scenario doesn’t materialize, Audi will have to consider more drastic measures to sustain its U.S. business.

      One potential approach could involve utilizing production facilities owned by the Volkswagen Group in Tennessee. However, beyond that, finding a quick solution is challenging, with the alternative of raising prices to restore profitability being the primary option. The German publication Handelsblatt mentioned the possibility of using Scout’s production facility, but that won’t be operational for another two years. Additionally, Scout will seek to produce its own vehicles and will need to gradually increase production to maintain quality.

      Regardless of the outcome, most viable options will likely necessitate higher prices for U.S. customers. While many purchasers might still be able to absorb these price increases, it doesn’t bode well for the brand in the near term. Importantly, Audi is not the only manufacturer encountering this dilemma; Jaguar Land Rover is grappling with the same challenge and has also suspended imports to the U.S. earlier today.