Customs duties will have serious repercussions on the European, and particularly German, automotive industry, as BMW, Mercedes, and Volkswagen are the main manufacturers doing business with the Americans. Faced with the new risk of Donald Trump's customs duties, and a potential escalation with the European Union, Volkswagen has just sounded the alarm and stopped delivering its goods to the United States on behalf of its subsidiary Audi.
According to Reuters, Audi is holding its cars arriving after April 2, the date on which Donald Trump introduced customs duties, in American ports. up to 25%, in addition to the 10% that already governed. Audi currently has 37,000 units in stock, the equivalent of 2 months of sales, in its American inventory, the British press agency informed a spokesperson for the brand.
Among its models marketed in the United States, Audi manufactures the majority of its range in Europe (Germany, Slovakia, Hungary) but also in Mexico, with the Q5 representing a quarter of Audis sold in the United States. The only Volkswagen factory in the country is in Chattanooga, Tennessee, where The group is now focusing on producing an electric car, the ID.4. In March 2025, faced with weak customer demand, the factory announced a reduction in its production.
Volkswagen lost 20% on the stock market
With 25% more in taxes, the impact on the purchase price of Audis in the United States will instantly disqualify the brand from its local competitors, such as Ford and Tesla. As a result, investors on the financial markets were quick to express their doubts: since mid-March, the group's shares have lost more than 20%.
On Monday, April 7, while car manufacturer executives met with European Commission President Ursula von der Leyen to discuss how the 27 EU countries would respond, Donald Trump rejected the EU's proposal to establish a "zero-for-zero" tariff system on industrial products.
Source: Reuters
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