Volkswagen’s Audi is holding its vehicles which arrived after April 2, when Donald Trump introduced a 25% tariff on automotive imports, in US ports, it stated on Monday, as firms scramble to work out how they are going to be affected by the duties.
The Volkswagen model has about 37,000 automobiles, enough for about two months of gross sales, in its US stock, the spokesperson added.
Audi is immediately within the firing line of Trump’s tariffs, with its best-selling US mannequin, the Q5, produced in Mexico and its remaining fashions coming from Europe or elsewhere.
The model despatched a memo to sellers, first reported on by US commerce publication Automotive Information, saying it could freeze shipments from April 2 till additional discover, a spokesperson stated.
Carmakers on common have slightly below three months’ price of stock readily available within the US, in response to information from automotive providers supplier Cox Automotive, giving them some respiratory room to maintain provide intact till they set up a longer-term technique for coping with the tariffs.
Business executives will meet EU president Ursula von der Leyen afterward Monday to debate how to reply to the tariffs, with European shares crashing to a 16-month low as traders worry greater costs, weaker demand and a possible international recession.
Reuters
