Porsche, Aston Martin adjust US rates amid tariff shift
While lower than earlier threats, the tariff is still significantly higher than the 2.5 percent rate that applied before President Donald Trump launched his trade push.
Porsche said it raised U.S. prices in July by 2.3 percent to 3.6 percent and currently has no plans to set up production in the U.S., which would exempt it from the tariffs. CEO Oliver Blume called the situation a long-term challenge, not a temporary setback, after the company lowered its full-year profit forecast and reported a US$462 million tariff-related loss in the first half.
Aston Martin also confirmed incremental price hikes in the U.S. since June and issued a profit warning, citing tariff pressures and weak demand in Asia.
While larger automakers have so far held off on significant price changes, analysts expect more to follow. Tariffs have already triggered losses and forecast cuts across the industry, affecting companies like GM, Volkswagen, Hyundai, and Mercedes-Benz.
Ford, which manufactures about 80 percent of its U.S. sales domestically, reported an $800 million tariff impact in its latest quarter and warned the annual cost may rise further. Nissan, meanwhile, posted a $535 million quarterly loss, partly due to tariffs and restructuring.
Analysts at J.P. Morgan said they are watching whether Mercedes-Benz and other premium brands will eventually raise U.S. prices to offset tariff costs. So far, hopes of securing sector-specific tariff exemptions have faded.
Mercedes CEO Ola Kaellenius, who also chairs Europe's carmakers association ACEA, said this week that the group now assumes the 15 percent tariff is here to stay and that individual deals are unlikely.
Volkswagen had previously expressed hope that investment commitments might help lower U.S. tariffs, but Blume, who also leads VW, aligned with Kaellenius in dismissing the likelihood of a separate agreement for automakers.
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