Audi cars held at U.S. Ports over tariffs

CGTN Europe

Audi cars have been held at US ports, and some auto shipments have been suspended, after a 25 percent tariff on all imported vehicles took effect last week. The auto sector is NOT part of Trump's 90 day tariff pause. Carmakers across Europe are reeling from the impact of Washington's new trade policy.   CGTN’s correspondent Natalie Carney reports.  #Audi #tariffs #Trump #Europe

Transcript

00:00Audi's mid-size Q5 and large Q7 SUVs are a favorite amongst many American drivers.

00:07Yet many owners will have to wait for their new vehicles as they sit in U.S. Customs

00:12while the company scrambles a response to new tariffs of 25%.

00:16This is now to consider, to wait what is happening.

00:20Are there any further negotiations with the Trump administration?

00:25What is the strategy within the Volkswagen Group?

00:28How to deal with imports, how to deal with the additional tariffs, who is hit with it, and to what extent.

00:34And I think this is why everybody is waiting.

00:37Audi has responded, saying,

00:39The Volkswagen Group, and thus also Audi AG, is closely monitoring developments

00:44and will conduct a comprehensive internal assessment of the potential impacts,

00:48including on supply chains and our production network, the entire automotive industry,

00:53as well as global supply chains and operations, and also customers, will bear the negative consequences.

01:00Despite Audi's Q5 and Q7 being built in Mexico for the U.S. market,

01:06the German company's vehicles do not comply with the required 75% local content rule

01:12included in the U.S.-Mexico-Canada agreement on trade,

01:16which means they are liable to the 25% tax put on imports.

01:20Many others are facing the same issues.

01:23Netherlands-based auto giant Stellantis, which owns Chrysler, Jeep, and Dodge,

01:28among other major brands, has announced it is pausing production at some of its plants in Canada and Mexico.

01:35Washington is hoping to incentivize automakers to move their production to the U.S.

01:40British automaker Jaguar Land Rover have also paused their U.S. shipments

01:44to assess the impact of Trump's tariffs.

01:47Their cars, the SUVs, they are deemed as light trucks because especially the displacement,

01:54the engine volume they have.

01:56So that means it is 25%, which was the original import tariff,

02:01plus 25% of the penalty tariff, meaning 50% on.

02:05So now it's a consideration, is the volume in the U.S. big enough to perhaps start planning a plant in the U.S.,

02:13what they didn't have before.

02:15Speaking at a Jaguar Land Rover factory in the U.K.,

02:18British Prime Minister Keir Starmer said that the global economic consequences could be profound.

02:24Yes, we have to keep pragmatic and calm in the steps that we take,

02:29but we also need to keep a sense of perspective and context.

02:32The relationship between us and the U.S. is a long-standing relationship

02:36that has helped to keep the peace for 80 years.

02:40We now have to step up to the challenges that tariffs undoubtedly put on the table for us.

02:46And that involves strategic adjustments to automotive export practices

02:49in order to mitigate the financial impacts.

02:53Natalie Kearney, CGTN, Munich.

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