World's No 2 automaker hikes cars by $4,100 as  tariffs kick in

Audi is raising prices on many of its 2026 models to cover President Donald Trump’s new tariffs. 

Volkswagen’s luxury division, part of the world’s second-largest car manufacturer, discreetly unveiled its latest pricing on Thursday night, omitting last year’s numbers.

Research by the Daily Mail reveals that around half of its models will see price increases between $800 and $4,100, with the steepest increases for gasoline-powered vehicles.

Audi’s German-made electric SUV, the Q4 E-tron, will see the smallest bump, from $49,800 this year to $50,600 next. 

But its V8-powered vehicles are facing the steepest increases: the SQ7 SUV is climbing by $3,000, while the RS6 Avant wagon is rising by $4,100. 

The automaker’s most popular car in the US, the Q5 crossover, will maintain its current sticker price of $52,200.  

Audi is softening the pricing blow by adding free maintenance on its new vehicles. 

However, this release points to a widening pattern—car manufacturers, already finding it challenging to maintain low prices, are increasingly shifting tariff expenses to consumers.

A luxury automaker will join a growing trend of automakers spiking prices to pay for President Trump's tariffs

A luxury automaker will join a growing trend of automakers spiking prices to pay for President Trump’s tariffs

Ford was the first, adding hundreds to the base price of its Mexican-made cars. 

Toyota, Subaru, Honda, GM, BMW, Volkswagen, Mini, Dodge, and Jeep have all seen price hikes, too. 

So far, the price hikes have typically been between two and seven percent, depending on the model. 

“[The business is] not sustainable longer term without significant price increases,” Mark Templin, COO for Toyota in North America, remarked during a Ward’s Auto event.

‘And the industry already has an affordability problem.’

This week, the average new vehicle rolled off the lot for $49,842. Six years ago, Americans paid an average of $38,363 for a new vehicle.   

Independent experts have been warning the Daily Mail for months that tariffs will increase car prices.

“This presents challenges for an industry already facing affordability issues,” Erin Keating, a Cox Automotive analyst, previously commented regarding the import tariffs.

The company's RS6 Avante wagon is one of the cars to receive the biggest bump in 2026

The company’s RS6 Avante wagon is one of the cars to receive the biggest bump in 2026

Audi's popular gas-powered imports are some of the most impacted, with thousand-dollar price jumps

Audi’s popular gas-powered imports are some of the most impacted, with thousand-dollar price jumps

VW's CEO, Oliver Blume, is facing a difficult problem in the US as tariffs keep bumping the cost to do business

VW’s CEO, Oliver Blume, is facing a difficult problem in the US as tariffs keep bumping the cost to do business

‘Affordable new vehicles are already few and far between – there are only 27 vehicles available with prices starting below $30,000.’

Experts have also cautioned that rising dealership costs will affect all US consumers. As vehicle and parts prices climb, so too will insurance premiums, they warned.

‘It’s not going to be helpful,’ Michael DeLong, a research and advocacy associate for the Consumer Federation of America, a consumer-interest non-profit, said.

‘Tariffs are going to increase the costs of various steel and other metals, and that’s going to drive up all auto insurance.’ 

The problem is particularly sticky for European automakers like Audi. 

At first, the company stored vehicles at US ports to avoid the entry fee. Later, its parent company, Volkswagen, drew criticism for adding tariff costs to sticker prices.

The company has since moved some manufacturing capacity to the US for its best-selling cars.  

But the situation remains murky. 

Yesterday, the US and Europe released an outline for new tariffs. The plan includes a current 27.5 percent tariff on all European-assembled vehicles and parts imported into the US. 

That could drop to 15 percent if the EU passes legislation to cut its own smaller tariffs. 

Audi did not immediately respond to the Daily Mail’s request for comment. 

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