Audi Plans $4 Billion US Plant as Government Promises Tariff Relief

October 31 news: The U.S. government has promised tariff relief to Audi to facilitate its plan to invest $4 billion in building an assembly plant in Georgia. Sources said U.S. officials told Audi executives that the government plans to roll out a broad tariff relief program for automakers with significant investments in U.S. production. Audi had previously requested that the EU import tariff be cut from 15% to 7.5%, but the U.S. Commerce Department is expected to agree to only about 10%, and details of the relief plan may be announced in the coming weeks. On October 26, Audi CEO Döllner appeared on stage with Trump at a campaign rally in Georgia, where Trump announced Audi's plan to build an assembly plant with an annual capacity of 200,000 SUVs. Döllner said the decision followed months of planning and negotiations. Volkswagen's supervisory board still needs to give final approval for the investment before it can proceed. Audi said that Trump's tariffs on automobiles, steel, aluminum and components caused Audi losses of about 1.2 billion euros in 2025, because all Audi vehicles for the U.S. market are imported from Europe or Mexico. BMW and Mercedes-Benz have already built large plants in South Carolina and Alabama and have not received tariff relief commitments equal to Audi's. Trump has explicitly urged Volkswagen, BMW and Mercedes-Benz to move production lines to the United States. Audi said the Georgia plant will create about 4,500 jobs, with construction planned to begin in 2027 and production expected in the early 2030s.