US President Donald Trump is pitching tariffs as a win for American manufacturing, using Volkswagen AG’s plan to build Audi’s first US plant in Georgia, to defend his trade policy less than two weeks before midterm elections in which Republicans face a tough fight to retain control of Congress.
The German automaker plans to invest about $4.2 billion in the facility, which will create around 4,500 jobs and have annual production capacity of up to 200,000 vehicles, Audi said. Construction is scheduled to begin next year, with production targeted for the early 2030s.
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“Without tariffs, they wouldn’t be coming in,” Trump said at a campaign rally in Perry, Georgia, where he touted the investment as proof that his trade policy was drawing manufacturing jobs to the US.
“Think of that. 200,000 cars a year. That’s incredible,” he told the crowd. “This will be the single largest investment in U.S. auto industry history, modern history.”
The announcement gives Trump a manufacturing win to promote as he faces mounting political pressure over tariffs, inflation and the cost of living. Republicans are trying to unseat Democratic Senator Jon Ossoff in Georgia, but the party’s candidate, Representative Mike Collins, is trailing in the polls ahead of the November 3 vote.
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Trump’s Georgia visit, his second to the state in as many weeks, reflects the importance of the Senate race to Republicans. The RealClearPolitics average of polls had Ossoff ahead by more than eight percentage points, while the nonpartisan Cook Political Report rated the contest “likely Democrat”.
The political challenge extends beyond Georgia. Trump’s approval ratings have slumped, while his promises of manufacturing investment have struggled to resonate with voters more concerned about household expenses and wage growth. The war in Iran has also pushed up energy prices, adding to pressure on household budgets.
Republicans are defending their congressional majorities in a difficult environment. Democrats are widely expected to regain control of the House, while the Senate remains competitive, with Republicans facing unexpected challenges in states including Texas and Ohio.
Trump has been campaigning frequently to support Republican candidates, making the Audi investment a timely argument for his claim that tariffs are bringing jobs and capital into the country. The announcement also comes as his administration faces scrutiny over the domestic costs of its trade policy, particularly its potential impact on prices.
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Audi bets big on US manufacturing
Audi Chairman of the Board of Management Gernot Döllner joined Trump at the rally to announce the investment, describing the project as a long-term commitment to the US market.
“We are planning to bring our biggest and most premium SUVs and produce them here in Macon, Georgia,” Döllner said. “This is a long-term investment because we believe in the American market.”
Volkswagen also plans to expand its Scout Motors plant under construction in Blythewood, South Carolina, adding capacity for 25,000 vehicles annually for a model yet to be determined, the official said, speaking on condition of anonymity.
Georgia’s political stakes extend beyond the Senate contest. The state also has a competitive governor’s race between Democrat Keisha Lance Bottoms and Republican Rick Jackson, which the Cook Political Report has rated a toss-up. Former President Barack Obama is expected to campaign in Georgia with Ossoff and Bottoms on Wednesday.
Trump won Georgia in 2016 and 2024 but lost it to Joe Biden in 2020. His subsequent efforts to challenge that result, including pressure on Georgia Secretary of State Brad Raffensperger to “find” votes, led to election-interference charges that were eventually dropped.
(With inputs from Bloomberg)