Add Audi's name to the list of manufacturers revising downward their financial targets for 2025, all due to the customs tariffs imposed by President Donald Trump on vehicles built elsewhere and imported into the U.S.
For Audi, which currently does not build any models on American soil, the impact is strong and real.
The Audi Group also includes the Bentley and Lamborghini brands, as well as motorcycle manufacturer Ducati. They now expect a return of 5 to 7 percent on sales this year, whereas forecasts were 7 to 9 percent before the tariffs were imposed.
Last week, it was parent company Volkswagen that announced a $1.5 billion USD revenue drop due to the U.S. administration's tariffs.
To add to the misery, Audi is another automaker that has seen its market share decline in China, where the company once did a booming business. Chinese manufacturers are increasingly active and their products are appealing consumers there, which represents an additional challenge for brands like Audi.
The only positive news is that with the agreement signed earlier this week between the European Union (EU) and Washington, which sets tariffs on products from Europe at 15 percent, they can now plan with clearer expectations. Companies, which often have to plan very long-term, really dislike uncertainty. For the moment, Audi is content to say that “the impact of the recently concluded tariff agreement between the U.S. and the EU is currently being evaluated.”
Company CFO Jürgen Rittersberger said the company is also seeking to clarify the final duty levels for Mexico, where Audi manufactures the Q5 SUV, one of its best-selling vehicles in the U.S.
Audi is still considering producing vehicles in the U.S. to sidestep trade barriers. It’s expected to make a decision on that front before the end of the year.
Overall, Audi expects a difficult year, but a recovery in 2026.