As trade tensions flare once more between the United States and Europe, Audi has hit the brakes—literally—on its U.S. deliveries. Following a newly announced 25% import tariff by President Donald Trump, the German automaker has paused distribution of all vehicles arriving at American ports since April 2.
Audi confirmed that it will not distribute any vehicles shipped after April 2 “until further notice.” This decision, first reported by German outlet Handelsblatt, effectively halts fresh supply for U.S. dealers as the company assesses how to move forward under the newly imposed import taxes.
Fortunately for Audi, it currently has around 37,000 vehicles already on U.S. soil—units that arrived before the tariff took effect. According to the company, this inventory should cover demand for the next couple of months, buying time to reassess logistics and pricing strategies.
Audi’s parent company, Volkswagen AG, is also adjusting course. It plans to tack on import duties directly to vehicle prices, a move that will likely push sticker prices higher for American consumers.
Audi isn’t alone in pumping the brakes. British brand Jaguar Land Rover (JLR) has announced a suspension of all U.S. shipments for April, citing the tariff as the direct cause. With the U.S. accounting for a quarter of its global sales, the impact is expected to be significant.
Meanwhile, Stellantis—the parent company of Jeep and Chrysler—has responded by temporarily halting production at plants in Canada and Mexico. That decision will leave about 900 U.S. employees temporarily out of work, adding domestic labor woes to the mix.
Even Ferrari, far from mass-market manufacturers, hasn’t escaped. The luxury carmaker has announced it will raise prices by 10% on certain models shipped after April 1, potentially increasing the price tag by as much as $50,000 per car.
Audi appears particularly vulnerable due to its production footprint. Its top-selling Q5 SUV is built in Mexico—a country now squarely in the tariff crosshairs. With 57,000 Q5s sold in the U.S. last year, the model accounts for over a quarter of Audi’s American sales. Other models, imported from Europe, are equally exposed to the new policy.
In contrast, rivals like BMW and Mercedes-Benz have a strategic edge, with major production facilities in the United States. BMW operates in Spartanburg, South Carolina, and Mercedes-Benz builds in Tuscaloosa County, Alabama. Volkswagen itself manufactures in Chattanooga, Tennessee, offering some cushion against the latest tariffs.
On a broader scale, European leaders are not taking the new trade measures lightly. European Commission President Ursula von der Leyen convened a meeting with car industry executives to strategize a response. European auto stocks fell sharply amid growing concerns over demand and pricing pressures.
The European Automobile Manufacturers’ Association (ACEA) issued a strong statement urging the U.S. to backtrack. Sigrid de Vries, Director General of ACEA, remarked, “Tariffs do nothing but raise prices for consumers across Europe, the United States, and the wider world.”
President Trump, however, was unmoved. Rejecting an EU proposal to drop all industrial tariffs, he claimed it was inadequate. “The EU has been very tough over the years,” Trump said. “It was formed to do damage to the United States in trade.”
“They don’t take our cars, like Japan in that sense,” he continued. “They don’t take our agricultural product; they don’t take anything practically.”
