The threat of tariffs on imported cars into the United States has automakers thinking how best to mitigate them. Prices are expected to rise on many makes and models when US President Donald Trump’s proposed 25-percent tariff goes into effect on April 2, and that could include Audi. The German automaker is considering passing at least some of the added cost onto consumers.
Juergen Rittersberger, Audi’s finance chief, said the company is looking for a "sweet spot" between increasing prices and adjusting production volumes, according to Reuters. The German luxury brand could also decide by the end of the year if it will localize production in North America, which could lessen the tariff’s effects. A January report alleged Audi could utilize Volkswagen’s plants in the US.
Audi produces the Q5 in Mexico, but not even the USMCA that Trump negotiated in his first term will protect automakers from the new tax in early April. Ford CEO Jim Farley previously warned that tariffs could lead to job losses, financial headaches, and higher prices for American consumers. He said tariffs against Canada and Mexico would "blow a hole" in the US auto industry.
Many automakers are taking a wait-and-see approach as Trump has already paused the tariffs on Mexico and Canada twice. BMW recently said it would "price protect" the 3 Series and 2 Series until the end of April but noted that prolonged tariffs would likely force it to raise its prices, too.
Source: Reuters
