The tax imposed by Donald Trump on imported cars has negatively affected the industry. While some major global automobile manufacturers are laying off workers, others have halted exports to the United States.

Donald Trump’s tax measures initially hit the global automotive sector. The United States announced a 25% additional import tax on imported cars on April 2. The companies most affected by the tax are those with high exports to America. Stellantis suspended its operations temporarily at production facilities in Canada and Mexico and temporarily laid off 900 workers. The British automaker Land Rover stopped exports to America for a month. Nissan announced that it would not take orders from America for two of its models, which are produced in Mexico.

According to the leading German automotive magazine Automobilwoche, Audi sent a letter to its dealers stating that all vehicles entering the US after April 2 will be put on hold and will not be delivered to dealers.

Dealers were asked to focus on reducing their inventories. It was noted that Audi currently has 37,000 vehicles in the US that are not yet affected by the new tariffs.

VOLVO TO INCREASE PRODUCTION Swedish Volvo hinted at increasing its production in America. It announced the evaluation of producing more models at its South Carolina factory. A similar move may come from the German manufacturer Mercedes, as plans for the new period are being prepared. AUTOMOBILE PRICES TO INCREASE It is said that there are approximately 50 days’ worth of zero-car stocks in America. Prices are expected to increase by 10% with the rise in tariffs. Therefore, there has been a rush at car sales points over the weekend. According to an analysis, visitor traffic to brands has increased by 30%.

While 16 million cars are sold annually in America, 8 million of them consist of imported cars.