US promises tariff relief in talks with Audi on Georgia plant, sources say
US officials have promised tariff relief to Audi to help secure its planned $4 billion Georgia assembly plant, two sources briefed on the talks said. Audi has sought a cut in its 15% EU import tariff to 7.5%; officials were expected to agree to around 10%.
1. Tariff relief discussions
US officials told Audi executives the government plans a broad tariff relief program for automakers making significant investments in US production, two sources briefed on the talks said. Audi has pushed for its 15% tariff on imports from the EU to fall to 7.5%, while the Commerce Department was expected to agree to around 10%, the sources said. Details of the program could be unveiled in the coming weeks.
2. Plant plans and timing
Audi CEO Gernot Doellner stood with President Donald Trump at a campaign rally in Georgia on Sunday, where Trump said Audi planned to build an assembly plant producing 200,000 SUVs annually. Audi said the investment would create approximately 4,500 jobs, with construction scheduled to begin next year and production starting in the early 2030s. Volkswagen's supervisory board must make a final decision on the investment.
3. Tariff costs
Audi has said tariffs on autos, steel, aluminum and parts cost it around €1.2 billion ($1.4 billion) last year. The company imports all vehicles for the US market from Europe or Mexico.
