Tariffs Force Automakers to Pause US Shipments

Update: Added an official statement from Jaguar Land Rover.

As we roll into the first full week of tariffs in the US, there’s a whole mess of uncertainty floating through the automotive realm. That holds especially true for automakers based outside the US with little or no manufacturing footprint in the States. A 25-percent ding on cars crossing the border is significant, and now it seems some brands are temporarily pausing shipments.

Audi is among them, according to a report from Automotive News. Citing a memo sent to dealers, all Audis headed to the US are on hold. Cars that arrive at ports after April 2 will be held there. Vehicles that entered the country on or prior to April 2 will be processed and sent to dealerships and marked with a sticker showing no tariff charges. 

Photo by: Audi

At this time, there’s no mention of when shipments might resume. When they do, some models could see tariffs totaling 50 percent. Specifically, the Audi Q5 is built in Mexico, but Audi isn’t part of the US-Canada-Mexico trade agreement. That could lead to a double whammy for the Q5.

In a statement to Motor1 last week, an Audi spokesperson said the company “is closely monitoring developments and will comprehensively assess internally the potential impact on supply chains and our production network.” We asked specifically about the pause in shipments, but haven’t yet received a reply.

It’s possible this could be the case for all of Volkswagen Group. Volkswagen has also reportedly paused shipments, and we’ve heard that Porsche has followed suit. We contacted Volkswagen along with Porsche and several other brands regarding vehicle shipments. In these cases, there’s no specific timeframe mentioned for when shipments may resume.

Photo by: Land Rover

Outside of Germany, Jaguar Land Rover has also paused shipments. Reuters first reported the news over the weekend, and a JLR spokesperson confirmed a one-month pause with Motor1 in the following statement:

“The USA is an important market for JLR’s luxury brands.  As we work to address the new trading terms with our business partners, we are enacting our planned short-term actions including a shipment pause in April, as we develop our mid- to longer-term plans.”

Lotus has paused all shipments indefinitely per Car and Driver, which sites chatter on a Lotus forum as the source. We’ve contacted both companies and will update this post as more information becomes available.

Automakers pausing shipments doesn’t come as a surprise. US President Trump’s tariff talk has been inconsistent since he took office. Initial tariffs of 25 percent were announced then walked back almost immediately. The current round that went into effect on April 3 feels a bit more permanent, but the language in the Executive Order Trump signed leaves all kinds of room for interpretation. It also leaves the door open to cancel said tariffs at any time.

By punting the ball downfield, automakers get time to wait out possible changes in the tariff structure. Based on the previous tariff rulings—not to mention the general financial turmoil hitting global markets caused by the tariffs—something is likely to change sooner rather than later.