BERLIN (Agencies): German carmaker Audi has suspended deliveries of its vehicles to the United States following the implementation of new tariffs on automobile imports imposed by U.S. President Donald Trump, according to a report by Automobilwoche.
The 25% levy on car imports, which took effect last week, is part of a sweeping set of “reciprocal” trade measures aimed at protecting American manufacturers. The tariffs have stirred global market concerns and drawn sharp criticism from European officials and industry groups.
An Audi spokesperson confirmed to the publication on Monday that the company had instructed U.S. dealers via letter to withhold any vehicles that arrived after April 2. Dealers were also advised to concentrate on selling their current inventory, which includes over 37,000 units unaffected by the new tariffs—enough stock to sustain sales for about two months, the spokesperson added.
Audi does not manufacture cars in the U.S. All models sold in the country are imported, with the Q5—its best-selling model in the U.S.—produced in Mexico. Other Audi vehicles come from Germany, Hungary, and Slovakia.
Meanwhile, Audi’s parent company Volkswagen has also begun pausing shipments to the U.S., both from Mexico and through American ports, as reported by The Wall Street Journal. Dealers have been warned of pending price increases, with more clarity expected by mid-April.
Trump’s latest tariff package, announced on April 3, targets nearly all of America’s trading partners, including the European Union. In addition to the car import duties, 150 categories of automotive parts will be subject to new tariffs starting in May.
The German Association of the Automotive Industry called the tariffs “a disastrous signal for free, rules-based trade.” Analysts caution that German automakers, particularly Volkswagen and Mercedes-Benz, may bear the brunt of the fallout, as they rely heavily on exports to the U.S. amid already rising production costs and pressures on Germany’s manufacturing sector.
European Commission President Ursula von der Leyen, speaking Monday, denounced the tariffs as “a major blow to the world economy” and reiterated the EU’s readiness to negotiate. She offered to eliminate all industrial tariffs in transatlantic trade, including those on autos, stressing that the EU has previously proposed a “zero-for-zero” approach, but received no meaningful response from Washington.
“We stand ready to negotiate,” she said, while warning that the EU is prepared to take countermeasures if necessary to defend its economic interests.
President Trump, in contrast, defended the tariffs via social media, arguing they are yielding substantial benefits for the U.S. economy.