BERLIN (Reuters) – Volkswagen’s Audi is holding its cars which arrived after April 2, when Donald Trump announced a 25% tariff on autos imports, in U.S. ports, it said on Monday, as companies scramble to work out how they will be affected by the duties. The Volkswagen brand has around 37,000 vehicles, sufficient for approximately […]
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Volkswagen’s Audi holding cars in U.S. ports due to autos tariff
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BERLIN (Reuters) – Volkswagen’s Audi is holding its cars which arrived after April 2, when Donald Trump announced a 25% tariff on autos imports, in U.S. ports, it said on Monday, as companies scramble to work out how they will be affected by the duties.
The Volkswagen brand has around 37,000 vehicles, sufficient for approximately two months of sales, in its U.S. inventory, the spokesperson added.
Audi is directly in the firing line of Trump’s tariffs, with its best-selling U.S. model, the Q5, produced in Mexico, and its remaining models all coming from Europe or elsewhere.
The brand sent a memo to dealers, first reported on by U.S. trade publication Automotive News, saying it would freeze shipments from April 2 until further notice, a spokesperson said.
Carmakers on average have just under three months’ worth of inventory on hand in the United States, according to data from automotive services provider Cox Automotive, giving them some breathing room to keep supply intact until they establish a longer-term strategy for dealing with the tariffs.
Autos executives will meet EU President Ursula von der Leyen later on Monday to discuss how to respond to the tariffs, with European shares crashing to a 16-month low as investors fear higher prices, weaker demand and a potential global recession.
(Reporting by Christina Amann, Victoria Waldersee; Editing by Miranda Murray and Rachel More)