Trump says Audi is putting billions into a new factory in Georgia, and he wants voters to see it as evidence that his tariffs are working.
The German luxury auto maker will produce up to 200,000 SUVs annually near Macon, putting an important part of its operations in America on American soil for the very first time.
The announcement was made Saturday during a GOP rally in Perry, just days before the November 3 midterm election. Georgia has a highly competitive gubernatorial and U.S. Senate race this year. Trump has been telling automakers for months that they should be making more cars in America. But now he can cite a plant announcement even though the whole story is much more complicated.
Trump points to Audi’s Georgia investment as a win for tariffs
Audi, part of Volkswagen, puts the Georgia project at roughly $4 billion and expects it to support about 4,500 jobs. Building work is due to start in 2027, with the first vehicles expected in the early 2030s. A US official told Reuters that the factory should handle the Q7, Q8 and Q9, three of Audi’s larger SUVs.
Audi chief executive Gernot Doellner attended the rally as the company outlined its plans.
“We are planning to bring our biggest and most premium SUVs and produce them here in Macon, Georgia.
“This is a long-term investment because we believe in the American market.”
The move could help Audi avoid some of the import costs that have been eating into its business. It currently brings every vehicle sold in the United States from Europe or Mexico. Last year alone, Trump’s tariffs cost the company €1.2 billion, or around $1.4 billion.
These responsibilities go further than just the manufactured vehicles to cover steel, aluminum, and car parts. Supporters claim that this will make manufacturing within the country more attractive. The opposing camp claims that these same taxes increase vehicle costs and deter companies from investing due to changing trade regulations.
In addition to this, Audi has another small production setup plan for South Carolina. This will allow 25,000 cars a year to be produced here. Cars produced in Europe now can be shipped to other markets using the United States. This production will be done at the $2 billion Scout Motors plant of Volkswagen in Blythewood near Columbia.
Ohio’s Republican senator Bernie Moreno went even further by claiming that Audi will eventually manufacture all of its SUVs in America. According to him, the whole agreement was contingent upon tariffs, less stringent regulations, and cessation of California’s control over fuel efficiency laws. Apart from this, outside the rally, an expensive Audi, decorated with its own license plates, added some theatricality to the situation.
Audi’s struggles show why the factory is a bigger gamble
There is a practical reason Audi wants more American production, beyond anything said on a campaign stage. Its global sales have fallen for two straight years. Deliveries dropped another 7% in the first half of 2026, and its US sales are down 16% this year.
It has been particularly difficult for the company in China, while Volkswagen’s loss of business to competitors in Europe such as BYD and Geely continues. The German company is now contemplating either shutting down or selling four of its manufacturing facilities in Europe. This includes Audi’s Neckarsulm facility in southwest Germany.
The US is looking attractive not only due to the lack of competition from China, since tariffs over 100% ensure that their cars do not appear in the market, but also because a new manufacturing facility is no guarantee of profits. There are several facilities in operation that run at less than full capacity.
Other automakers also try to balance costs of manufacturing with the risk of fluctuating trade policies. In July, Toyota announced that it will be investing $3.6 billion in a 2.5-million-square-foot truck assembly line at its San Antonio campus, moving some production from Mexico and hiring 2,000 employees by 2030.
Honda is considering another US plant but wants the US-Mexico-Canada Agreement extended first. Hyundai has said clearer rules could release more than $20 billion in American investment.
Meanwhile, Trump’s cuts to electric vehicle incentives have slowed US EV and battery production. Employment in American vehicle and parts manufacturing has also fallen since he took office last year, even as he promotes projects like Audi’s as victories for his tariff strategy.
The smartest crypto minds already read our newsletter. Want in? Join them.