European Auto Giant Considers Building Factory in US Over Customs Tariffs

Audi is considering building a factory in the southern United States , which would be the more expensive option among a number of scenarios being considered, with sources within the company estimating the costs at up to 4 billion euros ($4.6 billion), Reuters wrote.

An Audi spokesman said the company intends to expand its presence in the United States.

"We are currently analysing various scenarios. We are confident that we will make a decision this year in consultation with the (Volkswagen) group on what this will look like under specific conditions," the company confirmed in a statement.

Audi does not have its own production in the United States, but Volkswagen has a plant in Chattanooga, Tennessee, and one under construction near Columbia, South Carolina .

German carmakers are heavily dependent on exports , so Trump's announcement of sweeping tariffs has already cost them hundreds of millions of euros, Reuters reported.

BMW, Mercedes-Benz and Volkswagen are in talks with Washington over a possible deal on import tariffs, seeking to use their U.S. investments and exports as leverage to soften any blow, Reuters has learned.