Luxury automakers Porsche, Mercedes-Benz Group and Aston Martin have warned of a combined $889 million (€770 million) in additional costs as U.S. import tariffs continue to squeeze profits.
Porsche said it absorbed approximately €400 million ($462 million) in tariffs during the first half of 2025, while Mercedes-Benz flagged around €362 million ($420 million) in additional costs in the second quarter alone. Aston Martin also issued a profit warning, citing tariff pressure and weakening demand in China.
Industry Faces Tougher Outlook
The automakers’ disclosures come despite a new U.S–EU trade deal that will lower auto tariffs from 27.5% to 15% starting in August. Executives remain cautious, however, warning that the impact of protectionist trade measures is likely to linger.
Porsche has responded by raising U.S. prices by 2.3%–3.6% and revising its full-year profit forecast downward. Mercedes-Benz cut its car-making margin outlook to 4%, down from at least 6% previously, as tariffs and restructuring costs weigh heavily.
Aston Martin, meanwhile, scrambled to minimize the tariff burden by fast-tracking three months’ worth of deliveries to the U.S. in just 24 hours, allowing the British brand to benefit from a special 10% tariff rate under a U.S–UK quota deal.
Executives Hold Off on Separate Tariff Deals
Both Porsche and Mercedes-Benz executives confirmed they are not pursuing separate auto-sector tariff agreements with the U.S. government, opting instead to work within the broader trade framework.
Analysts say the escalating costs highlight the vulnerability of European carmakers, particularly those without significant U.S. production capacity. Many are now accelerating plans to localize manufacturing and reduce exposure to geopolitical risks.
