Audi Q5 faces 52.5% tariff

Audi’s Mexico-built Q5 became a case study in how stacked U.S. tariffs could hit imported vehicles, with Bloomberg reporting a total duty of at least 52.5%. (bloomberg.com) Bloomberg reported on April 10, 2025 that Audi was assuming three separate charges could apply to the Q5 sold in the United States. The model is assembled in San José Chiapa, Mexico, with components sourced from Hungary and Germany. (bloomberg.com) (audi-mediacenter.com) The formula cited in that report was a 25% Section 232 tariff on imported autos, a 25% tariff on Mexico goods that do not qualify for United States-Mexico-Canada Agreement preference, and a 2.5% most-favored-nation duty. Bloomberg said Audi was treating the Q5 as exposed to all three. (whitehouse.gov 1) (whitehouse.gov 2) (bloomberg.com) The White House said on March 26, 2025 that importers under the trade pact could certify U.S. content so the 25% auto tariff applies only to non-U.S. content. That means the final duty can vary by model, sourcing mix, and whether the vehicle qualifies for trade-pact treatment. (whitehouse.gov) A second White House fact sheet, issued March 6, 2025, said Mexico goods that claim and qualify for United States-Mexico-Canada Agreement preference would not face the separate 25% border tariff. Goods outside that preference would. (whitehouse.gov) That is why the 52.5% figure is best understood as a worked example, not a universal tariff rate for every Audi Q5 crossing the border. It depends on whether the vehicle qualifies under the trade pact and how much of its content is counted as non-U.S. under the auto proclamation. (whitehouse.gov 1) (whitehouse.gov 2) (bloomberg.com) The Q5 matters because Audi builds it in Mexico for the U.S. market and Bloomberg described it as the brand’s best-selling U.S. vehicle. Audi’s San José Chiapa site says the plant now produces the Q5 SUV and Q5 Sportback. (bloomberg.com) (audi-mediacenter.com) The tariff fight was already showing up in automaker decisions. CNBC reported on April 3, 2025 that Stellantis paused production at plants in Canada and Mexico after the new 25% U.S. automotive tariffs took effect. (cnbc.com) Volkswagen, Audi’s parent, also told investors tariffs were hurting results. Bloomberg reported the group’s first-quarter earnings fell 40%, while the company said U.S. tariffs were clouding its outlook. (bloomberg.com) The immediate question for Audi was not whether tariffs existed, but which ones would stack on one vehicle and how Customs would calculate them. That is what turned one Mexico-made SUV into a shorthand for the cost of the 2025 trade shift. (whitehouse.gov) (bloomberg.com)