Volkswagen’s Audi is holding its cars that arrived after April 2, when President Donald Trump announced a 25% tariff on auto imports, at U.S. ports, the company confirmed on Monday.
This move comes as automakers scramble to determine how the new duties will impact their operations.
The Volkswagen brand currently has approximately 37,000 vehicles in its U.S. inventory, which is enough to cover roughly two months of sales, according to a company spokesperson.
Audi is particularly affected by Trump’s tariffs, as its best-selling U.S. model, the Q5, is produced in Mexico, with other models coming from Europe and other regions.
The brand issued a memo to dealers, first reported by U.S. trade publication Automotive News, stating that it would freeze shipments from April 2 until further notice, a spokesperson confirmed. On average, carmakers in the U.S. maintain just under three months’ worth of inventory, according to data from automotive services provider Cox Automotive, providing some time to adjust to the tariffs and develop a long-term strategy.
Automotive executives are scheduled to meet EU President Ursula von der Leyen later on Monday to discuss responses to the tariffs. European stock markets have already fallen to a 16-month low as investors worry about higher prices, weaker demand, and the possibility of a global recession.
