In a growing logistical standoff, automakers like Mitsubishi, Audi, and Land Rover are choosing to hold thousands of new vehicles at U.S. ports rather than transporting them to dealerships, as uncertainty over new import tariffs continues to mount. With vehicle lots at some ports nearing full capacity, industry insiders warn the situation could snowball into a full-blown shipping crisis if left unaddressed.
Automakers Hold Off on Processing to Avoid Tariffs
The strategic decision to delay vehicle retrieval stems from a key financial incentive: automakers are not required to pay tariffs on cars until they are processed out of port facilities. By keeping their vehicles in limbo, manufacturers are buying time and hoping for favorable policy shifts.
As The Financial Times reports, some carmakers are now attempting to move their vehicles into U.S. bonded warehouses — specialized storage facilities where imported goods can be kept without immediate payment of duties. However, these storage options are expensive and limited, and space is rapidly running out.
Inventory Levels Remain Stable – For Now
Despite the standoff at the docks, most automakers maintain that their inventory levels remain sufficient. On average, carmakers currently have a 70-day supply of vehicles, which aligns closely with their industry norm. This buffer includes dealer inventory and vehicles in transit, which traditionally equates to about two months of supply plus two weeks’ worth of logistics time.
However, the clock is ticking. Demand is climbing as savvy buyers rush to purchase vehicles still priced under the old, pre-tariff rates. Mitsubishi, for instance, confirmed that its dealer network remains well-stocked for now.
“We have sufficient stock on the ground at dealers for the moment to not impact customer choice,” Mitsubishi spokesperson Jeremy Barnes told Automotive News.
Brands like Land Rover and Mitsubishi are reportedly operating with inventory levels well above the industry average, while Audi hovers close to target levels. But if the backlog persists, even these brands may begin to feel the pinch.
Betting on a Policy Reversal
While the risks of delaying vehicle retrieval are clear, automakers appear to be making a calculated gamble — that the U.S. government will soften or eliminate the new car tariffs before their inventories run dry.
President Trump has already shown signs of retreat on some tariffs, implementing a temporary 90-day pause on select non-automotive duties. Automakers are now hoping this flexibility will extend to vehicles, potentially saving millions in import costs.
Yet not everyone is optimistic. Port officials and logistics experts have started raising red flags. One anonymous logistics executive told The Financial Times, “We are getting closer to capacity at some ports.” Another added that unless the issue is resolved soon, the situation could become “quite ugly,” with imported vehicles quickly overwhelming port storage facilities.
A Supply Chain Crisis in the Making?
If the current trend continues, port congestion could create ripple effects across the entire automotive supply chain. Already, port workers are preparing for massive disruptions. The imposition of multimillion-dollar per-ship port fees, combined with concentrated shipments at a few overburdened ports, could lead to severe delays — drawing uncomfortable comparisons to the early days of the COVID-19 pandemic when supply chains were stretched to their breaking points.
For now, the automotive industry remains in limbo — caught between the unpredictability of global trade politics and the practical limitations of domestic logistics. Whether this gamble pays off depends largely on the next move from Washington. Until then, thousands of gleaming, unprocessed vehicles will continue to sit idle at America’s ports, waiting for clarity.
