US may cut Audi tariff to 10% in exchange for plant construction — Der Spiegel

The United States may reduce the effective tariff rate on imports of Audi cars to about 10% in exchange for the planned construction of a plant in Georgia. Der Spiegel reports this, citing two Reuters sources familiar with the matter.

Terms of the tariff offer

The United States currently imposes a 15% tariff on cars imported from Europe and a 25% tariff on vehicles made in Mexico. According to one Reuters source, Audi had asked for the rate to be halved to 7.5%, but the US government insisted on a double-digit figure.

It is unknown whether the rate of about 10% would apply to all imported Audi cars or only to vehicles supplied from Europe. It has also not been determined when the reduced tariff could take effect. An Audi spokesperson declined to comment.

More current news is available on the UA.News Telegram channel Telegram.

Investments in Georgia

According to the publication, similar tariff relief could also be offered to other carmakers if they move production to the United States. The Wall Street Journal had previously reported on such plans.

Audi plans to invest about $4 billion in a new plant in Georgia and produce 200,000 vehicles there per year. This primarily concerns large SUV models, including the Q7, Q8 and Q9. According to Manager Magazin, US President Donald Trump is expected to sign an executive order to reduce tariffs on cars imported from both Europe and Mexico.