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Audi has announced that it will be increasing the prices of its vehicles in the US market to offset the impact of the tariffs imposed on imported vehicles. The move is aimed at protecting the company’s profit margins and maintaining its competitiveness in the market.

The news comes as the US government has imposed a 25% tariff on imported vehicles from countries like Germany, where Audi is headquartered. The tariff, which went into effect in July, has put pressure on automakers to absorb the extra costs or pass them on to consumers.

Audi, which is owned by the Volkswagen Group, has announced that it will be increasing the prices of its A4, A5, Q3, and Q5 models by up to $5,000. The prices of its higher-end models, such as the A6 and A7, will increase by up to $10,000.

The price increases will vary depending on the specific model and trim level, but Audi has confirmed that the changes will take effect starting in 2020. The company has also warned that it may need to make further price adjustments if the tariffs remain in place for an extended period.

The decision to increase prices is designed to help Audi offset the additional costs associated with the tariffs, which the company estimates will total around 2.2 billion euros (approximately $2.5 billion) in 2020. The company has also warned that the tariffs could have a significant impact on its profitability and competitiveness in the US market.

The news comes as the US auto industry continues to grapple with the impact of the tariffs. Other foreign automakers, such as BMW and Mercedes-Benz, have also been affected by the tariffs, and have been forced to raise prices or consider alternative manufacturing strategies to mitigate the impact.

In a statement, an Audi spokesperson said: “We are committed to offering our customers an outstanding driving experience and exceptional value. To ensure that we can continue to do so, we have made the difficult decision to implement price increases on certain models.” The company has also emphasized its commitment to its employees and dealerships, and has pledged to work to minimize the impact of the changes on customers.

The announcement has sparked concerns among some consumers, who have taken to social media to express their disappointment and frustration with the price increases. However, others have defended the move, citing the need for Audi to protect its profitability in the face of the tariff regime. The debate is likely to continue as the auto industry continues to navigate the complexities of international trade and the ongoing impact of the tariffs.