U.S. Tariff Threatens Audi's U.S. Launch

U.S. President Donald Trump has threatened to raise tariffs on European Union car imports to 25%, which would have a 'significant' impact on German premium carmaker Volkswagen — Audi. Volkswagen — Audi, a subsidiary of Volkswagen, is particularly exposed as it lacks U.S. production and relies on imports from Europe and Mexico. Its new Q9 SUV, produced in Slovakia, would be directly affected. Volkswagen — Audi's finance chief, Juergen Rittersberger, stated that the company is assessing the situation and exploring options with Volkswagen to establish a U.S. manufacturing base, though this would require political support. The current 15% tariff already costs Volkswagen about 4 billion euros annually. Both Volkswagen — Audi and Volkswagen are undertaking cost-cutting measures, with Volkswagen — Audi planning to cut 7,500 jobs by 2029, amidst tariff pressures and competition from Chinese automakers.