Audi, a subsidiary of the German Volkswagen Group, announced that it is holding cars that arrived after April 2, when Donald Trump announced a 25% tariff on car imports, at US ports as companies struggle to determine their impact.
A spokesperson added that Volkswagen has approximately 37,000 cars in its US inventory, enough for about two months of sales.
Audi faces a direct threat from Trump’s tariffs, as its best-selling model in the US, the Q5, is produced in Mexico, while all its remaining models come from Europe and other countries.
Reuters reported, citing a spokesperson for the German company, that the company sent a note to dealers in the US stating that it would freeze shipments starting April 2 until further notice.
According to data from Cox Automotive, US automakers hold approximately three months’ worth of inventory, giving them plenty of time to maintain supplies while they develop a long-term strategy to deal with the tariffs.
European auto industry leaders will meet with EU President Ursula von der Leyen to discuss how to respond to the tariffs, as European stocks fell to a 16-month low amid investor concerns about rising prices, weak demand, and the possibility of a global recession.
