Audi said a potential increase in US tariffs on European car imports could have a “significant” impact on its operations as it prepares to launch a new flagship SUV in the United States this summer. The warning, issued May 5, reflects growing exposure to trade policy shifts as the company expands its presence in the US premium segment. Company executives indicated that tariff uncertainty is already influencing financial planning and operational assessments tied to the upcoming launch.
Speaking in Berlin, Juergen Rittersberger, Chief Financial Officer, Audi, said the company is evaluating a proposed increase in tariffs to 25% on vehicles imported from the European Union. The measure has been raised by Donald Trump, who argues that the EU has not complied with a prior bilateral trade agreement. Rittersberger noted that the policy has not been finalized but emphasized the scale of potential disruption, particularly for import-dependent premium manufacturers.
“One thing is clear: if these tariffs are imposed, it would place a significant burden on our company,” said Rittersberger. He added that Audi has not incorporated additional tariff increases into its current financial outlook. The company is continuing scenario analysis to evaluate cost implications and potential pricing adjustments, including the elasticity of demand in the premium segment.
Audi’s exposure stems from its lack of US manufacturing capacity, relying instead on imports from Europe and Mexico to supply the market. Its upcoming Q9 SUV, produced in Bratislava, is expected to be directly affected by any tariff increase. The model represents a key component of Audi’s expansion strategy in the United States, particularly in the large luxury SUV segment, where margins are closely tied to pricing flexibility and import cost structures.
Current tariff levels already impose a financial burden. Volkswagen Group estimates that existing duties of 15% generate approximately €4 billion (US$4.7 billion) in annual costs across the group. Audi confirmed that its 2026 profit forecast does not account for any increase beyond this level. As a result, additional tariffs would directly affect margins unless offset by pricing or operational restructuring measures.
Rittersberger said the company is exploring the possibility of establishing production capacity in the United States in coordination with Volkswagen Group, as part of a broader localization strategy to mitigate tariff exposure. However, he indicated that such a move would depend on policy support and economic feasibility. “Without political support in the form of subsidies, tariff reductions, or similar measures, it will be difficult,” he said, highlighting the dependence on regulatory alignment.
Audi has previously evaluated US manufacturing options but has not committed to a timeline or location. The renewed focus on localization reflects broader industry efforts to mitigate trade risks and reduce reliance on imports, particularly as protectionist policies gain traction across key markets. At the same time, Volkswagen and its brands are implementing cost-cutting measures and adjusting product strategies amid rising competition and policy uncertainty. Audi plans to reduce 7,500 jobs by 2029 as part of its restructuring program, aimed at preserving profitability and funding its electrification roadmap.
Parallel to tariff concerns, Volkswagen reported a 4% decline in global deliveries in 1Q26, totaling 2.05 million vehicles. The company cited weakening demand in China and tariff pressures in the United States as primary drivers. Deliveries fell 15% in China and nearly 20% in the United States, with electric vehicle volumes declining at a faster rate than overall shipments.
The results reflect structural shifts in China’s automotive market, where domestic manufacturers such as BYD and Geely are expanding production and introducing lower-cost electric models. Volkswagen said that intensified competition and faster innovation cycles are reducing pricing power for foreign brands.
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