Trump hails tariffs for new US$4.2 billion Audi plant in Georgia

President Donald Trump defended his decision to wield tariffs during a campaign rally in Georgia, saying they have made the US richer, as he announced that Volkswagen agreed to build a new US$4.2 billion Audi plant in the state.

“Think of that. 200,000 cars a year. That’s incredible,” Trump told a crowd in the city of Perry. “This will be the single largest investment in US auto industry history, modern history.”

Later, he added, “Without tariffs, they wouldn’t be coming in.”

Trump was speaking as Republicans are trying to flip a Senate seat held by Democrat Jon Ossoff in the midterm election, despite trailing in the polls.

The campaign stop marked Trump’s second in the state in as many weeks, an indication of the importance of the Senate contest in Georgia.

With less than two weeks until election day on November 3, though, Representative Mike Collins, the Republican candidate, faces an uphill battle in a state that was once a Republican stronghold.

The RealClearPolitics average of polls has Ossoff leading by more than eight percentage points, while the non-partisan Cook Political Report has forecast the race as “likely Democrat”.

That dynamic is indicative of a broader political climate that has soured for Republican candidates.

Trump is at historic low approval ratings and his efforts to tout manufacturing investment promises have failed to resonate with voters who are more concerned with high costs of living and wage growth. The war in Iran has also spiked energy prices, adding further strain to household budgets.

The Audi announcement marks a political win for Trump, who has been on the defensive about the domestic effects of his tariffs, particularly on inflation, in a number of battleground Senate races.

Volkswagen plans to manufacture the Audi Q7, Q8 and Q9 models at the Georgia plant, according to a US official involved in the talks.

Volkswagen will also expand its Scout Motors plant under construction in Blythewood, South Carolina, adding 25,000 units per year of capacity for a model yet to be determined, said the official, who spoke on condition of anonymity to detail the plans.

Audi said in a news release that the US$4 billion plant would create some 4,500 jobs with an annual capacity of up to 200,000 vehicles. Construction will begin next year, with the aim of beginning vehicle production in the early 2030s.

“We are planning to bring our biggest and most premium SUVs and produce them here in Macon, Georgia,” Audi chairman of the board of management Gernot Dollner said at the rally, standing near Trump. “This is a long-term investment because we believe in the American market.”

Richard Motes, 61, a Perry resident who used to work at an aircraft manufacturer, praised the Audi plant announcement.

“That’s awesome, I want jobs to come to Georgia,” Motes said.

“I’m dead red,” he added. “If they let me push a button to vote all Republican, I’d push the button.”

Trump has been travelling nearly daily in the run-up to the midterms, seeking to help boost Republicans in competitive races across the country. Polls indicate Democrats are likely to regain control of the House, but the Senate is still in play with Republicans on the defensive in unexpected states such as Texas and Ohio.

Another rally attendee, Chris Capp, 55, a former Army National Guard employee, said he is 50-50 on whether Trump is still an asset to Republican candidates in Georgia, given his falling popularity.

“I love Trump to death, but sometimes he should keep his mouth shut,” he said.

Georgia is also home to a competitive governor’s race between Democratic candidate Keisha Lance Bottoms and Republican Rick Jackson, which the Cook report has rated a toss-up.

Former president Barack Obama is expected to campaign in Georgia with Ossoff and Bottoms on Wednesday. While Ossoff has pledged to serve a full six-year Senate term if reelected, he has been seen as a potential Democratic 2028 contender.

Trump won Georgia in 2024 and 2016, but lost to former president Joe Biden in 2020, prompting the president to promote unfounded theories of fraud in that election.

Trump pressured Georgia Secretary of State Brad Raffensperger to “find” the votes he needed to win the state. Trump and allies were indicted to face allegations of carrying out election interference, but those charges were eventually dropped.

The president has repeatedly promoted false claims that he won the 2020 election and questioned the integrity of Georgia’s vote counting. Raffensperger earlier this month said that he expected the state’s election results by midnight on election day, downplaying the president’s remarks.