German automaker Audi has paused deliveries of vehicles that arrived at U.S. ports after April 2, responding to new 25% tariffs imposed by U.S. President Donald Trump. The company announced that all affected cars will temporarily be withheld from distribution to dealers.
An Audi spokesperson revealed that the company has approximately 37,000 vehicles already in U.S. inventory. These cars are not subject to the new tariffs and are expected to meet U.S. market demand for the next two months.
“We have sufficient stock to continue serving our customers without interruption,” the spokesperson said.
The brand notified dealers about the shipment freeze through a memo, emphasizing that the measure is effective from April 2 until further notice. Audi’s parent company, Volkswagen AG, also plans to adjust prices by adding import fees to its vehicles sold in the United States.
Impact Across the Auto Industry
Audi isn’t alone in adjusting to the new tariffs. British carmaker Jaguar Land Rover (JLR) has announced it will halt U.S. deliveries in April as part of “short-term actions” in response to the tariffs. JLR exports about 100,000 vehicles to the U.S. annually, accounting for a quarter of its global sales.
Similarly, Stellantis—the parent company of Chrysler and Jeep—is temporarily stopping production at plants in Canada and Mexico. This decision came shortly after the tariff announcement on April 4 and will result in the temporary layoff of 900 U.S. employees.
Luxury carmaker Ferrari is responding by increasing prices by 10% on certain models after April 1, adding up to $50,000 to the cost of a typical Ferrari.
A Shifting Market
In the 2024 fiscal year, the Audi Group delivered approximately 1.7 million vehicles worldwide, including over 164,000 fully electric models. However, these figures represent declines of nearly 12% and 8%, respectively, compared to the previous year.
The new tariffs are prompting automakers to reassess their strategies in the U.S. market. With the industry facing uncertainties, companies are exploring ways to mitigate the impact on their operations and customers.
“We are closely monitoring the situation and will adjust our plans accordingly to ensure we continue to meet the needs of our customers,” Audi stated.
