German vehicle leading company suspends deliveries to US

German automaker Audi has halted deliveries of its vehicles to the US due to the newly implemented 25% tariff on car imports, as part of a broader series of trade measures announced by US President Donald Trump. The company informed US dealers to hold back vehicles received after April 2, urging them to focus on reducing current stock, which is expected to last around two months. Audi imports all of its cars into the US, with its popular Q5 model being produced in Mexico, while other models come from Germany, Hungary, and Slovakia.The tariffs, part of a wider trade initiative to protect US manufacturers, have shaken the global automotive market. Audi's parent company, Volkswagen, has also warned US dealers of rising costs, with additional surcharges on auto parts set to apply starting in May.The German auto industry is expected to face significant challenges, as manufacturers like Volkswagen and Mercedes-Benz grapple with higher production costs and factory closures. In response, European Commission President Ursula von der Leyen has offered a “zero-for-zero” tariff deal for industrial goods, including automobiles, although past proposals have not received a positive response from Washington. The EU has warned it may take retaliatory measures to protect its interests. Meanwhile, Trump has defended the tariffs, claiming they are beneficial for the US economy.

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