Luxury Shutdown? German Car Giant Freezes U.S Shipments

German car manufacturer Audi is suspending deliveries of its vehicles to the United States in response to the 25% import tariff imposed by U.S. President Donald Trump, according to a report by Automobilwoche.

A spokesperson for Audi confirmed that a letter had been sent to U.S. dealerships, instructing them to hold all vehicles that arrived after April 2, the date when the new levies took effect. Dealers were advised to concentrate on reducing existing inventories, which currently include over 37,000 vehicles unaffected by the tariffs — enough, the company estimates, to last roughly two months.

Audi does not operate manufacturing plants in the U.S. Its best-selling model in America, the Q5, is produced in Mexico, while other vehicles are sourced from Germany, Hungary, and Slovakia.

The tariff decision is part of a broader protectionist campaign launched by President Trump, who last week levied 25% tariffs on imported cars and signaled further duties on 150 categories of auto parts starting in May. The measures apply across the board, including to European Union members, fueling concerns about an escalating global trade conflict.

German Industry Reacts

The German Association of the Automotive Industry slammed the move as “a disastrous signal for free, rules-based trade.” Industry analysts warn that Volkswagen, Audi’s parent company, along with Mercedes-Benz, could suffer major setbacks in the U.S. market, facing rising costs and potential factory closures across their supply chains.

EU Signals Pushback

European Commission President Ursula von der Leyen called the tariffs a “major blow to the world economy” and reiterated the EU’s willingness to negotiate. She said the bloc has previously offered a “zero-for-zero” industrial tariff agreement, including the auto sector, but claimed Washington has failed to respond adequately.

President Trump admitted A "zero-for-zero" offer has been made, but declared he is "Not looking at that".

Defending his tariff policy Trump has been promising that it will bring strong economic results, and reiterated his message that the U.S. will no longer tolerate decades of trade exploitation.

As negotiations stall and automakers brace for more disruptions, the standoff between the U.S. and the EU marks a significant escalation in the global trade landscape — one that could reshape the international auto market in the months ahead.