US may give Tariff Concession to Volkswagen Audi for $4bn Investment Inspite of Prohibition under WTO TRIMS

[ABS News Service/30.10.2026]

· The Trump Administration has promised to ease tariffs on automakers that commit to more US manufacturing, according to people familiar with the situation, The Wall Street Journal reported.

The policy change emerged amid talks to get Audi to build a $4 billion assembly plant in Georgia, the people said. Audi’s plan to build a sprawling car factory in rural Georgia, big enough to make 200,000 vehicles a year, was announced Saturday by President Trump at a campaign rally in the state.

The deal with Georgia officials was reached earlier that day.

Audi executives traveled to Washington in recent weeks to press for a break on tariffs, some of the people said. Owned by Germany’s Volkswagen, Audi imports all of its US cars from Mexico and Europe and paid more than $1 billion in duties last year.

The executives received assurances from the Trump administration that the Commerce Department would soon institute a tariff-relief program for companies that invest in the United States, according to people with knowledge of the discussions.

Officials are still working out details of the plan, which is likely to allow companies that invest in US factories to receive exemptions or offsets for tariffs on imported vehicles or parts, said the people.

Companies must commit to starting factory construction before the end of next year to qualify, one of the people said.

The Audi factory has been touted as a win for Trump’s industrial policy ahead of midterms that are expected to be highly contentious for his party. The administration has used tariffs as a bargaining chip for winning manufacturing investments, even as they have driven up the cost of many goods.

The tariff-relief program is likely to be similar to one that the Commerce Department established for its tariffs on polysilicon, a key ingredient in solar panels. Under that program, solar companies can submit plans to reshore production to the Commerce Department and receive tariff exemptions for certain products upon approval.