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Trump Effect: German Auto Giant Audi Looks to Move Production to U.S.

German luxury auto manufacturer Audi said it is considering moving car production to the United States to avoid tariffs from the Trump administration.

Volkswagen’s subsidiary Audi brand said this week that it is examining various long-term strategies, including potentially shifting production to America, to deal with President Donald Trump’s restrictions on foreign imports.

Audi CEO Gernot Döllner said that the company is “currently assessing various scenarios for additional localization in North America – among other things, to be closer to the needs of local customers and to make ourselves more resilient to global economic uncertainties.”

Although no firm decision was made this week, the German auto giant said that it would be announcing later this year where it intends to produce its primary vehicle models for the American market.

Currently, Audi does not have any production sites in the United States, having opted to produce top-selling models in the U.S. market, such as the Q5, in Volkswagen plants in Mexico.