Audi is considering establishing its own manufacturing facility in the United States as a direct response to renewed import tariffs imposed under U.S. President Donald Trump’s administration. The German luxury brand, part of the Volkswagen Group, has been disproportionately affected by the tariffs due to its lack of domestic production in the U.S.
Unlike fellow German automakers BMW, Mercedes-Benz and Volkswagen, which already operate U.S. production sites, Audi relies heavily on imports from its main plants in Germany and Mexico. With the Trump administration imposing a 25% tariff on vehicles from Germany and maintaining a 15% tariff on cars imported from Mexico, Audi’s cost structure for the U.S. market has come under pressure.
According to sources cited by Der Spiegel, Audi has initiated an internal assessment and is now seriously evaluating the construction of a new plant in the southern United States. While the company has not ruled out using Volkswagen’s existing Chattanooga facility or the Scout Motors plant under development in South Carolina, building a dedicated factory currently appears to be the preferred option. Such a facility could employ up to 4,000 workers, with series production potentially starting in late 2027 or early 2028.
The economic strain of absorbing higher tariffs or passing those costs on to customers has triggered renewed urgency in Ingolstadt. The company had previously delayed U.S. production expansion due to market considerations but may now face a strategic inflection point. Shared platforms and supplier synergies across the Volkswagen Group’s southern U.S. network are seen as critical enablers for the project.
Before making a final decision, Audi plans to await the outcome of ongoing trade negotiations between the U.S. and the European Union. However, uncertainties remain over the durability of any agreement under the current administration.
Beyond avoiding tariffs, local production could yield broader financial benefits. Domestically manufactured vehicles exported abroad may qualify for credits that offset tariffs on German- or Mexican-built imports. Such credits would be particularly relevant for large SUVs like the Q8, which form a key part of Audi’s U.S. lineup.