British automaker Aston Martin opting to limit deliveries of its vehicles to the United States due to import tariffs levied on its luxury cars.
America's Share in Aston Martin's 2024 Revenue Surged, But Tariff Woes Loom
Aston Martin rolled out a jaw-dropping 319 vehicles to the USA this year, representing a 5% leap from last year. According to Bloomberg, the Yank market accounted for a whopping one-third of Aston's total earnings in 2024. But, they've got plans to up the prices on certain models due to extra tariffs. In March, the company revised its sales prediction for 2025, forecasting mere modest advancements.
While Aston Martin's shares were trending up by 3.2% in the pre-market trading on Nasdaq, they took a slight plunge in London. At 09:53 BST (11:53 Moscow time), their shares were trading at 69.5 pounds (-0.5%). Over the past year, their shares have nosedived a staggering 35%.
It's not just Aston Martin feeling the heat. Jaguar Land Rover (another Brit ride maker) also announced a pause in shipments to the U.S., effective for a month as of early April. On the 3rd of April, 25% tariffs slammed the import of foreign-produced automobiles and auto parts, whichted by the U.S. President would only apply to the "non-U.S. content" of cars produced under the USMCA agreement.
Bloomberg reported that European automakers, including Volvo and Mercedes-Benz, planned to hike prices and shift production to the U.S. Nissan Motor was considering relocating some of its production to the States, and Audi suspended deliveries of cars imported after April 2.
The EU has retaliated to the tariffs by proposing a "zero-for-zero" tariff agreement covering automobiles and industrial goods, aiming to de-escalate the situation. However, the Trump administration rejected this proposal. This strategy likely applies to automakers like Mercedes-Benz and Audi, who operate U.S. plants alongside their European bases.
To mitigate the tariff impacts, automakers are employing various strategies: –
- Production shifts: Automakers with U.S. manufacturing factories managed to avoid tariffs by producing cars on American soil, temporarily absorbing the costs if needed (such as BMW with Mexico-made cars until May 1, 2025).
- Lobbying efforts: European automakers lobbied for exempting auto parts from the tariffs, and were partially successful, as stated in reports from April 2025.
In April 2025, the Trump administration indicated plans to slash tariffs on U.S.-manufactured vehicle components. Meanwhile, the EU prepared €18 billion in retaliatory tariffs targeting U.S. goods, though they were not auto-specific.
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Tags:
- Aston Martin's shares surged in pre-market trading on Nasdaq, but took a slight plunge in London, potentially due to the anticipated tariff increases on certain models.
- The U.S. President imposed 25% tariffs on foreign-produced automobiles and auto parts in early April, causing companies like Aston Martin and Jaguar Land Rover to pause shipments.
- In response to the tariffs, the EU proposed a "zero-for-zero" tariff agreement covering automobiles and industrial goods, aiming to de-escalate the situation, but the Trump administration rejected this proposal.
- To mitigate the impact of tariffs, automakers are implementing strategies such as production shifts and lobbying for exemptions on auto parts.
- Mercedes-Benz and Audi, who operate U.S. plants alongside their European bases, may be affected by this ongoing business dispute surrounding tariffs on cars.
