Key Points
- Luxury carmakers Porsche, Mercedes-Benz Group and Aston Martin on Wednesday each outlined the extent to which U.S. import tariffs have taken their toll.
- Collectively, the carmakers warned of combined costs exceeding 770 million euros ($889 million).
- “This is not a storm that will pass,” Oliver Blume, chairman of the executive board of Porsche, said in a statement.
Luxury automakers Porsche , Mercedes-Benz Group and Aston Martin on Wednesday each laid out the painful impact of U.S. President Donald Trump ‘s trade war — to the tune of a combined $889 million blow. German sportscar manufacturer Porsche said U.S. import tariffs resulted in a 400-million-euro ($462 million) hit in the first six months of the year, while domestic peer Mercedes-Benz Group warned of a tariff effect of roughly 370 million euros in the second quarter. British luxury carmaker Aston Martin also issued a profit warning, citing the impact of U.S. tariffs and weak Chinese demand. The London-listed company, famed for both featuring in the iconic James Bond movies and for its history of financial ups and downs, said the “evolving and disruptive U.S. tariff situation was unhelpful to our operations” through the June quarter. Collectively, the luxury carmakers warned of combined costs exceeding 770 million euros, or $889 million, from U.S. tariffs. The flurry of corporate earnings has been reaffirming the impact of the Trump administration’s trade measures on Europe’s auto giants. The White House in April raised tariffs to 27.5% on European Union auto imports, seeking to protect and strengthen the U.S. automotive sector. Several carmakers have since sounded the alarm , particularly given the high globalization of supply chains and the heavy reliance on manufacturing operations across North America. European auto industry groups welcomed news of a U.S.-EU framework trade agreement earlier in the week, while simultaneously expressing deep concern about the costs linked to the new tariff reality. ‘Not a storm that will pass’ The agreement brokered on Sunday means the Trump administration will impose a blanket tariff of 15% on most EU goods. It represents a significant reduction from Trump’s threat to levy charges of 30% from Aug. 1 and almost halves the existing tariff rate on Europe’s auto sector. “We continue to face significant challenges around the world. And this is not a storm that will pass,” Oliver Blume, chairman of the executive board of Porsche, said in a statement out Wednesday. “The world is changing dramatically – and, above all, differently to what was expected just a few years ago. Some of the strategic decisions made back then appear in a different light today.” Shares of Porsche rose 2.4% on Wednesday morning, while Mercedes-Benz Group dipped 1.5% and Aston Martin fell more than 2%.
