Porsche may have no substitute for American production if new tariffs threatened by President Trump are enacted. Germany’s Handelsblatt reports

Volkswagen would consider producing Porsche & Audi models in the U.S., depending on the existence and strength of U.S. tariffs, according to Handelsblatt.

FRANKFURT (Reuters) - German carmaker Volkswagen is considering setting up production sites in the United States for its high-end Audi and Porsche brands to avert fallout from tariffs threatened by President Donald Trump, Handelsblatt reported on Wednesday.

The two Volkswagen Group brands have never built cars in the U.S., but a combination of lower taxes and higher tariffs might change their mind.

The next Porsche and Audi EVs could be made in the US. Volkswagen is considering moving Porsche and Audi EV production to the US after Trump threatened new tariffs on Europe, Mexico, Canada, and other major trade partners.

Porsche and Audi are considering building cars in the US for the first time. The move would reduce the brands’ exposure to threatened import tariffs. Audi could get a Scout SUV spinoff by 2028, German media reports.