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.

All Porsche and Audi EVs are currently built outside the US, making them particularly exposed to an increase in tariffs. The Audi Q5 is built in Mexico, while Porsche EV models are produced in Europe.

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

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.

Unlike parent company Volkswagen, the Audi and Porsche brands currently have no production sites in America.

Volkswagen could expand its Chattanooga, Tennessee, factory to build Porsche and Audi models in the U.S. for the first time.

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.