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Despite the imposition of US tariffs, Porsche has opted against producing vehicles in the United States.

U.S. import tariffs boosting German car prices in America, suggesting local production could be a cost-effective solution, according to Porsche's assessment of potential production shifts to North America.

, and Administrator

2025 September 15 . 3:45 AM

1 min read

Despite the imposition of US tariffs, Porsche has ruled out manufacturing vehicles in the U.S.

Despite the imposition of US tariffs, Porsche has opted against producing vehicles in the United States.

In a significant development in international trade, the tariff rate on auto imports, which had been 27.5 percent before the trade conflict, will now be reduced to 15 percent starting from August 1. However, this revised rate will still be higher than the pre-conflict levels.

The tariffs, imposed by U.S. President Donald Trump, have had a noticeable impact on the costs of selling German cars in the U.S. for manufacturers. According to industry insiders, the cost to German automaker BMW, though not specifically stated, is described as a "significant amount."

The increased costs have led some industry experts to predict that German automakers may shift production towards the U.S. in the long term. This strategic move could potentially mitigate the financial burden caused by the tariffs.

However, not all German automakers are rushing to set up production lines in the U.S. Porsche, for instance, has no concrete production plan for the USA at the moment. The highly competitive and volatile electric vehicle market, where scaling production and securing profitability present significant challenges, is a key factor in Porsche's decision. The broader EV industry context, with its complexities and uncertainties, is making it difficult for even established players like Porsche to make firm commitments.

As the tariff landscape evolves, it will be interesting to see how German automakers adapt their strategies to navigate the U.S. market and maintain their competitive edge.