New Tariffs Threatens Sales Of Audi’s Luxury Models

The announced increase in US tariffs on car imports from the European Union would pose a significant burden for German car manufacturer Audi, the company’s CFO Jürgen Rittersberger said today.

This comes as Audi prepares to launch its new luxury sports utility vehicle (SUV) model in the US market, Reuters reports.

US President Donald Trump has threatened to increase tariffs on cars from the European Union to 25 percent, arguing that the European bloc has not fulfilled its obligations under last year’s trade agreement with Washington.

Rittersberger said that the decision has not yet been officially confirmed but warned that the possible introduction of new tariffs would have a significant impact on the company’s operations.

Audi, which operates within the Volkswagen Group, has no production facilities in the US market and supplies it with vehicles from Europe and Mexico.

These measures would particularly affect the new luxury SUV model Q9, which will be produced in Slovakia and is scheduled to be launched in the US this summer.

The company said it was considering options for starting production in the United States but stressed that such a move would require political support through subsidies or reduced customs burdens.

Audi has maintained its profit forecast for the current year, which does not include a possible increase in the current 15 percent tariffs.

Volkswagen Group said that the existing customs burden already costs around four billion euros annually, while Audi plans to cut 7,500 jobs by 2029 as part of cost-cutting measures.

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