Source: https://www.thedrive.com/news/porsche-audi-could-build-cars-in-the-u-s-to-avoid-tariffs-report
Porsche and Audi are open to building cars in the United States if the Trump administration imposes new, much higher tariffs on vehicles imported from Europe and Mexico, according to a recent report. The looming tariffs could be enacted as early as February 1, 2025.
Citing German business newspaper Handelsblatt, industry trade journal Automotive News wrote that Porsche and Audi are dangerously exposed to the new administration’s proposed tariffs because both brands import all of the cars they sell in the United States. Porsche sources all of its models from Europe: the 911, the 718, the Panamera, the Taycan, and both versions of the Macan are built in Germany, while the Cayenne is made in Slovakia. Audi’s Q5 is made in Mexico, while the other models in its range are imported from Europe.
There’s no way that either brand can set up a manufacturing operation in the United States before Trump’s deadline; you can’t pull a big lever to start building a car somewhere. Realistically, the shift will take months at the very least and, more likely, years. However, anonymous company sources told Handelsblatt that Porsche and Audi could turn to parent company Volkswagen to skirt profit-robbing tariffs as quickly as possible.
One of the options being evaluated is expanding the Chattanooga, Tennessee, factory that currently makes the Atlas and the ID.4. The plant has excess capacity, according to Automotive News, and it could be scaled up to build more cars. Audi is also open to making cars in the factory that Volkswagen-owned Scout is building in South Carolina for the Terra and Traveler trucks. Scout’s plant isn’t scheduled to open until 2027, however.
President Trump hasn’t confirmed that new tariffs will be activated on February 1. As of writing, the tariffs (which came up often during his campaign) represent more of a threat than a policy decision. And, the administration hasn’t officially decided how high the tariffs should be yet.
“We are thinking in terms of 25% on Mexico and Canada,” Trump said on January 21. “I think we will do it February 1.”
Details about the potential tariffs that Porsche and Audi, among many others who import goods from Europe, would face, are even more vague.
“The European Union is very, very bad to us, so they’re going to be in for tariffs. It’s the only way … you’re going to get fairness,” he declared.
Volkswagen, which builds several models in Mexico (including the Tiguan), warned the Trump administration against new tariffs. It said that it’s “concerned about the harmful economic impact” that the tariffs would have on American consumers and the international auto industry.
Porsche and Audi have never built a car in the United States, and it’s too early to tell which models they would choose to manufacture here. Neither company has commented on the report. We’ve reached out to Porsche and Audi, and we’ll update this story if we learn more.
Porsche and Audi are open to building cars in the United States if the Trump administration imposes new, much higher tariffs on vehicles imported from Europe and Mexico, according to a recent report. The looming tariffs could be enacted as early as February 1, 2025.
Citing German business newspaper Handelsblatt, industry trade journal Automotive News wrote that Porsche and Audi are dangerously exposed to the new administration’s proposed tariffs because both brands import all of the cars they sell in the United States. Porsche sources all of its models from Europe: the 911, the 718, the Panamera, the Taycan, and both versions of the Macan are built in Germany, while the Cayenne is made in Slovakia. Audi’s Q5 is made in Mexico, while the other models in its range are imported from Europe.
There’s no way that either brand can set up a manufacturing operation in the United States before Trump’s deadline; you can’t pull a big lever to start building a car somewhere. Realistically, the shift will take months at the very least and, more likely, years. However, anonymous company sources told Handelsblatt that Porsche and Audi could turn to parent company Volkswagen to skirt profit-robbing tariffs as quickly as possible.
One of the options being evaluated is expanding the Chattanooga, Tennessee, factory that currently makes the Atlas and the ID.4. The plant has excess capacity, according to Automotive News, and it could be scaled up to build more cars. Audi is also open to making cars in the factory that Volkswagen-owned Scout is building in South Carolina for the Terra and Traveler trucks. Scout’s plant isn’t scheduled to open until 2027, however.
President Trump hasn’t confirmed that new tariffs will be activated on February 1. As of writing, the tariffs (which came up often during his campaign) represent more of a threat than a policy decision. And, the administration hasn’t officially decided how high the tariffs should be yet.
“We are thinking in terms of 25% on Mexico and Canada,” Trump said on January 21. “I think we will do it February 1.”
Details about the potential tariffs that Porsche and Audi, among many others who import goods from Europe, would face, are even more vague.
“The European Union is very, very bad to us, so they’re going to be in for tariffs. It’s the only way … you’re going to get fairness,” he declared.
Volkswagen, which builds several models in Mexico (including the Tiguan), warned the Trump administration against new tariffs. It said that it’s “concerned about the harmful economic impact” that the tariffs would have on American consumers and the international auto industry.
Porsche and Audi have never built a car in the United States, and it’s too early to tell which models they would choose to manufacture here. Neither company has commented on the report. We’ve reached out to Porsche and Audi, and we’ll update this story if we learn more.
