Audi Halts U.S. Deliveries Due To Tariffs

Audi’s owner Volkswagen has confirmed to Reuters that it is holding new Audi vehicles at U.S. ports of entry due to the new 25% tariff on imported automobiles that went into effect last week. Audi currently has a two-month supply of vehicles on dealer lots, according to the report.

Volkswagen builds several models at its Chattanooga, Tenn., factory, including the electric ID. 4, but Audi imports of of its models from Europe and Mexico. Audi sold a record 228,550 vehicles in the U.S. in 2023 and 196,576 last year and its best selling model, the Q5, is exclusively built in Mexico.

Jaguar Land Rover, which imports all of its U.S. market vehicles from Europe, has also paused all new shipments as it assesses the new tariff situation.

Prior to the tariffs going into effect on April 3, there were unconfirmed reports that Audi and Volkswagen-owned Porsche were looking at bringing some production to the U.S.

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The Volkswagen-owned Scout brand is currently in the process of building a new factory in South Carolina for its upcoming lineup of SUVs, but it is not scheduled to begin production until late 2026 or early 2027.

Chrysler, Dodge, Jeep and Ram parent company Stellantis has paused or reduced production at several North American factories as it assesses the tariff situation, while General Motors has taken steps to increase production at a truck factory in Indiana to help offset Mexican and Canadian-sourced vehicles.

Ford has not confirmed any changes to production, but is extending an employee pricing discount to all customers through June 2, which has been partly matched by Stellantis.