A representative from the company disclosed that around 37,000 vehicles in US inventory are untouched by tariff. Credit: Luciano Santandreu / Shutterstock.com.

German luxury carmaker Audi has halted the distribution of its vehicles at US ports following the implementation of a 25% tariff by the US government.

The suspension affects cars that arrived in the US after 2 April.

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Audi has also paused deliveries to dealerships of cars affected by the new US tariffs, as reported by a German newspaper Handelsblatt.

A company spokesperson revealed that approximately 37,000 vehicles in US inventory remain unaffected, and are expected to meet demand for about two months.

The European Automobile Manufacturers’ Association (ACEA) has urged for a reversal of the tariff decision.

ACEA director general Sigrid de Vries said: “The ongoing volatility of global markets is only increasing trade barriers and costs for businesses. Tariffs do nothing but raise prices for consumers across Europe, the United States, and the wider world.”

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Volkswagen, Audi’s parent company, is considering passing on the import fees to consumers by increasing vehicle sticker prices in the US.

In the fiscal year 2024, the Audi Group reported sales of around 1.7 million vehicles compared to the previous year’s total of 1.91 million units.

Also, Audi brand models delivery fell by 11.8% to 1,671,218 units, including 164,480 fully electric cars.

Jaguar Land Rover (JLR), the British automotive company, is also stopping deliveries to the US as a result of the tariffs.

JLR described the shipment halt as a “short-term action” set to commence in April.

Jaguar Land Rover spokesperson told CNBC via email: “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.”

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