A STRING of automotive manufacturers – including Jaguar Land Rover, Audi, Lotus and Nissan – will suspend shipments of vehicles to the US if tariffs are eventually imposed by US president Donald Trump and some have already cancelled orders from the US.

The Volkswagen Group has responded to the tariff issue by suspending imports of Audi vehicles.

Volkswagen, the world’s second-largest car company and one that has factories in the US, is the parent of several brands including Audi, Porsche, Bentley, Skoda and Lamborghini.A bulletin sent to Audi dealers in the US reportedly states that it is holding back cars that arrived in US ports after April 2. Audi currently has about two months’ supply of vehicles with US dealers.

In a statement, Volkswagen said: “The US is an important market for the Volkswagen Group. We have invested more than $A23 billion into the market recently, support thousands of well-paid jobs, and contribute to prosperity and growth.

“We share the assessment of most experts that US tariffs and any counter-tariffs will have negative consequences for growth and prosperity in the US and other economic areas. 

“The entire automotive industry, global supply chains and companies as well as customers will have to bear the negative consequences.”

Volkswagen-owned Lamborghini posted a record year in 2024 with revenue up 16 per cent to $A5.65 billion on sales of 10,687 vehicles, with more than one third (3712 cars) destined for its biggest market, the US.

Following the record-breaking 2024, Lamborghini chief executive Stephan Winkelmann told Spanish newspaper La Vanguardia that it has to find a “sweet spot” that allows it to preserve profit margins by transferring these tariffs to car buyers.

Stephan Winkelmann

“There is a maximum limit within which to dump duties on customers: from there on, you give up margins,” he told the newspaper.“We have to see how our competitors behave and how US customers react. There are risks to our volumes.”

In addition, the parent company of Jeep, Dodge, Chrysler, and Ram, Stellantis, is temporarily halting production at its car assembly factories in Mexico and Canada. 

English sports car maker Lotus has also told customers that “no more Emira (sports cars) will be shipped to the US at this point.”

The automotive industry is currently facing turmoil as global stocks are disrupted and companies grapple with the effects of the Trump administration’s broad tariff implementation.

Last week a 25 per cent tariff on all foreign cars imported into the US was enforced, affecting the global car industry, which is highly integrated with North American manufacturing operations. But then the Trump administration postponed implementation of the tariffs by 90 days. 

JLR said the US represents a key market for its luxury brands. It sells about 400,000 Range Rover Sports, Defenders, and other models each year, with exports to the US making up nearly a quarter of its total sales, according to Reuters.

A 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.”The White House also plans to introduce tariffs on certain car parts by May 3

Following the enactment of Trump’s auto tariffs, several car manufacturers have announced measures such as price increases, import fees, production halts, and potential staff layoffs.

UK prime minister Keir Starmer stated that his government would respond to the US tariffs with “cool and calm heads”, as discussions for a potential trade deal with the US continue.

The UK, along with other nations, has been subjected to a 10 per cent baseline import duty on top of the 25 per cent tariff on car exports and steel and aluminium products.

In a similar move, Nissan has halted new orders from the US for two of its Infiniti SUV models, the QX50 and QX55, which are made at the COMPAS plant in Mexico, as a direct response to the tariffs.

JLR said late last month that its business is resilient and accustomed to changing market conditions.

“Our priorities now are delivering for our clients around the world and addressing these new US trading terms,” the company said.

Nissan has ceased new orders from the US for two of its Infiniti SUV models, the QX50 and QX55, produced at the COMPAS plant – which it operates jointly with Mercedes-Benz – in Mexico, reported Reuters.

The move comes in response to new US tariffs. Nissan exports more vehicles to the US from Mexico than any other Japanese manufacturer.

While production of the two Infiniti SUV models will continue for markets outside the US, Nissan did not specify how much of the output is allocated to international sales.

A Japan-based Nissan spokesperson told Reuters that the vehicles were also shipped to markets including the Middle East and Canada.

Nissan plans to maintain two production shifts for the Rogue SUV (X-Trail SUV) at its Smyrna plant in Tennessee. This reverses an announcement made in January 2025, which indicated that the company would discontinue one of the shifts in April.

In efforts to streamline operations and reduce costs, Nissan Motor disclosed plans last month to simplify its management structure, which will see a 21 per cent decrease in top executive positions, from 42 to 33, starting from the 2025 fiscal year.

At that time, Nissan said: “This is also part of Nissan’s commitment to improving decision-making efficiency by simplifying organizational layers and expanding the span of control. These changes are designed to empower regions and establish clear roles and responsibilities within the organisation.”