AS PREDICTED, CAR COMPANIES aren’t taking Trump’s tariffs lying down. In a quick reaction, tens of thousands of foreign-made cars are being held in US ports to head off the newly imposed tariffs.
Audi (owned by the Volkswagen Group) is keeping new cars off the market, and has been doing so since April 2. Dealers across the country have been advised of the import freeze.
Audi cars are all produced overseas, mostly in Europe and the company conducts no production in the US. With Europe being one of Trump’s targets, Audi is one of the most affected car companies. Compounding the pressure on Audi, the Q5 is produced in Mexico, one of the first countries to fall within the orbit of the new tariffs.
Reports are that Audi has stockpiled about 37,000 cars, about two months’ worth of sales.
It will be interesting to see how long the US public will be celebrating the new tariffs. The United Auto Workers Union is about to start paying the price for Trump’s decision. About 900 UAW workers at the five US Stellantis plants are facing layoffs, starting Monday, because powertrains and stampings for plants in Canada and Mexico have been temporarily brought to a halt due to the tariffs.
Trump is already facing criticism from billionaires who disagree with his policy and are watching their wealth get slammed by plummeting stock markets.
It remains to be seen how many Americans will follow his advice to “be strong, courageous and patient” as they suffer the results of his swingeing tariffs.