Audi delays cars at US ports due to duties

Audi, part of the Volkswagen Group, is detaining cars arriving at US ports after April 2, when US President Donald Trump announced a 25 per cent duty on car imports.

Here's What We Know

According to Automotive News, Audi has notified U.S. dealers that car shipments to the U.S. have been frozen since 2 April until further notice.

For Audi, the abrupt imposition of import duties is particularly painful, Reuters reported. The brand's best-selling model in the U.S., the Q5 crossover, is made in Mexico, with other models sourced from Europe or elsewhere.

On average, automakers have less than three months' worth of inventory in the United States, according to consulting firm Cox Automotive. That gives them a short respite to keep supplies steady until they can develop a long-term strategy to work around the duties.

Reactions from other automakers

Jaguar Land Rover said it would suspend deliveries of British-made cars to the US for a month to consider ways to mitigate the impact of President Donald Trump's 25 per cent duties.

Meanwhile, Volkswagen has temporarily halted rail shipments of cars to the U.S. from Mexico and is holding up cars arriving by sea from Europe at the port. According to the WSJ, the company is considering imposing an "import levy" on vehicles subject to the 25 per cent duties.

Sources: Reuters, Automotive News